Feedstocks Push Resin Prices

Despite lackluster domestic demand, relentless increases in feedstock costs are forcing suppliers to push for higher resin prices. PVC demand is slack enough to put hikes in doubt.

 

PE PRICES UP

Polyethylene prices rose 3¢/lb in April, half of the 6¢ increase announced in December. The second half was expected to take effect in May, and a new 5¢ hike was announced for June 1. The London Metal Exchange (LME) North American futures contract for June in blown film butene LLDPE was 68.5¢/lb, up 0.9¢ from May.

Contributing factors: Mike Burns, global business director for PE at resin purchasing consultant Resin Technology, Inc. (RTI) in Fort Worth, Texas, expected PE suppliers to get their 3¢ hike in May. Domestic demand was down 3% to 6% in the first quarter vs. a year ago, and little improvement was expected in the second quarter. But resin operating rates reportedly are still running near 90%, thanks to export demand. “PE exports are still above average, yet lower than the very high levels of last year,” said Burns.

In addition, March’s ethylene monomer contract price had moved up from 58.5¢ to 61.5¢/lb, and spot ethylene prices also rose a few cents in April. Upwards movement seemed likely to continue, driven by low ethylene supplies. At press time, monomer contract negotiations for April/May involved possible increases from 3¢ to over 6¢/lb.

 

PP PRICES RISING

Polypropylene prices moved up 3¢ to 4¢/lb in April in a partial implementation of an announced 5¢ hike. An additional 5¢/lb increase for May 1 was revised upward by some suppliers to 7¢. Meanwhile, LME’s June North American short-term futures contract for g-p injection-grade homopolymer sold for 73.94¢, up more than 5¢ from May.

Contributing factors: Rising costs of feedstocks and energy to produce PP are cited by suppliers as justifying higher resin prices. Propylene monomer rose 5.5¢/lb in March and April, reaching a new record of 65¢/lb. Negotiations for May contract prices signaled increases of at least 4¢. Tight monomer supplies are not expected to ease soon. Scott Newell, RTI’s director of client services for PP says June could see another resin price hike.

Domestic PP demand was down 6.5% through April vs. last year. Exports dropped 20%, as U.S. resin prices are now too high. Suppliers have cut back North American PP capacity, and LyondellBasell just announced plans to halt PP production at the Equistar plant in Morris, Ill., by the end of the year. Suppliers’ resin inventories are pretty well balanced vs. demand. Says RTI’s Newell, “They are only making as much as they can sell. This gives them the leverage to pass through price increases as feedstock costs rise.”

 

PET COSTS MORE

PET prices moved up 5¢/lb as suppliers implemented their April increase. The move was driven by higher feedstock costs. In April, paraxylene went up 4¢/lb and ethylene glycol rose 2¢/lb. Together they translate into at least 2¢ to 3¢ higher cost/lb of PET. Although suppliers project increases in domestic demand of 5% to 6% this year—significantly less than the double-digit growth of recent years—first-quarter demand was flat. Some improvement is expected by mid-year, peak season for PET.

 

PVC HIKE IN DOUBT

PVC prices eventually settled up 2¢ in March and April, an increase deferred from Feb. 1. In May, PVC producers all announced a 4¢/lb hike for June 1. These increases are based solely on feedstock costs. Demand is still so weak that processors say any increase will have to be delayed. A bump upward in May was attributed to prebuying.
PS UP 4¢ TO 6¢

Ineos announced a hike of 4¢/lb for crystal PS and 6¢ for HIPS as of June 1. It was supported by Total and Americas Styrenics, the joint venture between Dow and Chevron Phillips, which went live May 1. The hikes are based on soaring benzene costs. Contract benzene hit $3.87/gal in May, up 12¢ from April. Butadiene rubber, which makes up 8-10% of HIPS, is short and on allocation, adding more cost pressure. Meanwhile demand picked up slightly, though not to normal spring levels. 

 

Market Prices Effective Mid-May A
RESIN GRADEb	¢/LB	¢/CU INc
ABS
MED IMPACT	90 - 110	3.4 - 4.2
HI IMPACT	95 - 131	3.6 - 5.0
X-HI IMPACT	105 - 145	4.0 - 5.5
HI HEAT	90 - 125	3.4 - 4.7
PIPE	89 - 100	3.7 - 3.8
SHEET	94 - 110	3.5 - 4.2
TRANSPARENT	129 - 200	5.6 - 8.8
FITTINGS	89 - 110	3.5 - 4.3
PLATING	160	6.0
FLAME RET	124 - 140	4.6 - 5.9
STRUCT FM	87 - 97	3.2 - 4.3
10% GLASS	129 - 140	4.8 - 5.6
30% GLASS	124 - 136	4.6 - 6.3
ABS/PC ALLOY	149 - 180	5.5 - 6.8
ABS/PVC ALLOY	134 - 139	5.0 - 5.2
ABS/NYLON ALLOY	194 - 350	9.0 - 16
ACETAL
HOMOPOL	151 - 172	7.7 - 8.7
20% GLASS	171 - 235	8.7 - 11.9
COPOLYMER	144 - 160	7.3 - 8.1
25% GLASS	171 - 245	8.7 - 12.4
ACRYLIC
G-P	117	5.0
IMPACT	192	8.2
ACRYLONITRILE COPOL
EXTRUSION	101 - 116	4.0 - 4.6
INJECTION	120 - 135	4.8 - 5.4
ALKYD	65 - 74	4.9 - 5.5
CELLULOSICS
ACETATE	187	8.6
CAB	189	8.2
CAP	189	8.2
DAP (G-P)	251 - 497	16.7 - 34.7
EPOXY
G-P RESIN	116 - 126	NAd
COMPOUNDS
C/B/Te	123 - 166	9.4 - 12.9
R/C/Df	208 - 271	15.3 - 20.1
SEMICONDUCTOR
NOVOLAC	193 - 228	13.1 - 15.9
ANHYDRIDE	188 - 268	13.9 - 19.2
EVA
INJECTION	69 - 71	2.3 - 2.4
FILM EXTRU	67 - 69	2.3
EVOH	330	15
FLUORO-POLYMER
CTFE	5000 - 6000	385 - 462
ECTFE	1200 - 1680	90.7 - 120
ETFE	1205 - 1730	80.7 - 115.8
FEP	971 - 1470	74.8 - 113.2
PFA	1550 - 2520	120 - 195
PTFE	500 - 950	33.5 - 63.6
PVDF	693 - 1050	44.4 - 67.2
IONOMER
PACKAGING	127 - 166	4.3 - 6.0
INDUSTRIAL	150 - 244	5.0 - 8.3
LIQUID-CRYSTAL POLYMERS
INJECTION MIN FILLED	690 - 1035	44.2 - 72.1
GLASS FILLED	695 - 895	40 - 52
CARBON FILLED	1700 - 2000	83.2 - 138.6
UNFILLED	1000 - 1200	58 - 70
EXTRUSION UNFILLED	1200 - 2200	60.5 - 110.9
MELAMINE COMPOUND	90 - 94	5.5 - 5.6
MELAMINE/PHENOLIC COMPOUND	75 - 83	4.5 - 5.0
NYLON
TYPE 6	139 - 159	5.7 - 6.5
MIN FILLED	131 - 144	5.4 - 5.9
30% GLASS	148 - 173	6.0 - 7.0
TYPE 66	153 - 168	6.3 - 6.9
MIN FILLED	151 - 159	6.2 - 6.5
30% GLASS	142 - 192	5.8 - 7.9
TYPE 69	250 - 276	9.7 - 10.7
TYPE 6/10	286 - 313	12.4 - 13.6
TYPE 612	400	15.3
30% GLASS	309 - 311	14.7
40% GLASS	309	14.7
TYPE 46	295	12.6
TYPE 11	329 - 341	13.6 - 14.1
30% GLASS	331 - 350	15.0 - 15.8
40% GLASS	347 - 360	17.7 - 18.5
TYPE 12	318 - 341	12.1 - 13.0
30% GLASS	327 - 350	14.7 - 15.8
50% GLASS	299 - 340	15.6 - 17.8
TRANSPARENT AMORPHOUS	247 - 360	10.3 - 15.0
PHENOLIC MOLD COMP	75	3.8
REINFORCED GRADES	105 - 268	6.1 - 16
POLYAMIDE-IMIDEg
UNFILLED	2750	148.5
30% GLASS	2500	135
30% CARBON FIB.	3500	185
POLYARYLATE	200 - 280	8.8 - 12.3
POLYARYL SULFONE	440	21.8
POLYBUTYLENE
G-P	94 - 96	3.1
FILM	88 - 91	2.9
PIPE
COLD WATER	116 - 120	3.9 - 4.0
HOT WATER	162 - 166	5.5 - 5.6
POLYCARBONATE
INJECTION	171 - 182	7.4 - 7.9
20% GLASS	177 - 190	7.6 - 8.2
30% GLASS	178 - 217	7.6 - 9.3
EXTRUSION	145 - 180	6.3 - 7.8
BLOW MOLD	150 - 185	7.0 - 7.5
STRUCT FOAM	149 - 181	6.4 - 7.8
20% GLASS	235 - 255	10.1 - 11.0
FR	166 - 197	7.1 - 8.5
CD	135 - 195	5.8 - 8.4
POLYESTER (TP) PBT TYPE
UNFILLED	145 - 150	6.8 - 7.3
HI-IMP	165 - 175	7.8 - 8.3
30% GLASS, FR	195 - 215	9.2 - 10.1
STRUCT FOAM	159 - 165	NAd
PET
BOTTLE (RAILCAR)	80 - 82	4.0 - 4.1
MOD PET
30% GLASS	132 - 143	7.4
55% GLASS	148 - 155	9.8
30% GLASS FLAME RET	147 - 157	9.2
PETG COPOL	114 - 124	5.2 - 5.6
POLYESTER THERMOSET
G-P ORTHO	147 - 157	NAd
ISOPHTHALIC	175 - 190	NAd
BIS-A	210 - 230	NAd
PEEK	4400	231
30% GLASS	3300	173
POLYETHERIMIDE	641 - 646	29.3 - 29.5
30% GLASS	526 - 531	24.0 - 24.2
POLYETHERKETONE (PEK)	2950	130.1
30% GLASS	2600	153
POLYETHERSULFONE	350 - 400	17.2 - 19.7
30% GLASS	425 - 525	21 - 25.9
POLYETHYLENE (RAILCAR) LDPE
G-P MOLDING & EXTRU	78 - 81	2.6 - 2.7
INJECTION	80 - 85	2.6 - 2.7
LID RESIN	82 - 84	2.7
LINER	77 - 79	2.6
CLARITY	76 - 78	2.5 - 2.6
EXTRU COATG	81 - 83	2.7
BLOW MOLD	83 - 84	2.7
LLDPE, BUTENE BASED
G-P MOLDING	75 - 77	2.5 - 2.6
LME 30-DAYj	80 - 82	2.6 - 2.7
FILM	68.5	2.3
ROTOMOLD	77 - 79	2.6
LLDPE, HAO-BASED
G-P MOLDING	78 - 80	2.6
LID RESIN	88 - 90	2.8
LINER FILM	81 - 83	2.7
HDPE
G-P INJ MOLD	75 - 77	2.5 - 2.6
FILM	84 - 86	2.7
BLOW MOLD	85 - 88	2.7
HMW-HDPE
BLOW MOLDING	82 - 84	2.6 - 2.7
FILM	83 - 86	2.7
PIPE	90 - 93	2.9 - 3.0
UHMW-PE	1.00 - 1.25	3.6 - 3.7
PPE/PPO BASED RESIN
INJECTION	180	6.8
20% GLASSh	283	12.3
30% GLASSh	291	13.3
EXTRUSIONh	242	9.2
STRUCT FM	231	NAd
PPS
40% GLASS	450 - 520	27.0 - 31.2
55% GLASS/MINERAL	345 - 420	22.7 - 27.7
65% GLASS/MINERAL	270 - 315	18.9 - 22.1
POLYPROPYLENE (RAILCAR)
G-P HOMOPOL INJECTION	82 - 84	2.6 - 2.7
LME 30-DAYj	73.9	2.4
EXTRUSION FIBER	80 - 82	2.6
PROFILES	85 - 87	2.7
RANDOM COPOL
BLOW MOLDING	86 - 88	2.7
FILM	86 - 88	2.7
INJECTION	85 - 87	2.7
IMPACT COPOL
MED IMP	96 - 98	3.0 - 3.1
HI IMP	98 - 100	3.1
POLYSTYRENE (RAILCAR)
G-P CRYSTAL	91 - 97	3.4 - 3.6
HI HEAT	94 - 100	3.7 - 3.6
HIPS	92 - 97	3.4 - 3.6
SUPER HI IMP	101 - 106	3.8 - 4.0
FR	107 - 113	4.0 - 4.2
STRUCT FM (FR)	105 - 108	NA
EPS
UNMODIFIED	85 - 88	NAd
MODIFIED	86 - 90	NAd
POLYSULFONE	650 - 750	29 - 33
10% GLASS 430 20.6	799 - 875	36 - 39
30% GLASS 372 20.01	699 - 775	31 - 35
POLYURETHANE (TP)
ESTER TYPE	185 - 255	8 - 11
ETHER TYPE	245 - 295	10.6 - 13
PU ISOCYANATES
POLYMERIC MDI	125 - 145	NAd
80/20 TDI	135 - 145	NAd
PVC RESIN (RAILCAR)
G-P HOMOPOL	57 - 59	NAd
PIPE	56	NAd
FILM	62 - 64	NAd
COPOLYMER FLOORING	69 - 74	NAd
DISPERSION HOMOPOLY	81 - 87	NAd
COPOLYMER	86 - 90	NAd
CPVC PIPE COMPOUND	119	NAd
PVDC
EXTRUDABLE	162	NAd
SILICONES
MOLD. COMP.	581 - 640	38.1 - 39.3
SPECIALTY GR.	891 - 3148	NAd
SILICONE/EPOXY	339 - 343	22.5 - 22.8
STYRENEACRYLIC	108 - 112	3.7 - 4.0
SAN (G-P)	80 - 88	3.0 - 3.3
STYRENE MALEIC ANHYDRIDE
G-P	110 - 115	4.2 - 4.3
HI IMP	130 - 140	4.2 - 4.5
FR	175 - 183	6.7 - 7.0
TP ELASTOMERS
OLEFINIC	70 - 76	2.4
POLYAMIDE	300 - 350	10.9 - 12.7
POLYESTER	200 - 310	8.8 - 13.6
STYRENIC	82 - 237	2.9 - 8.3
UREA MOLDING COMPOUND
BLACK & BROWN
WHITE & IVORY
VINYL ESTER
COR RES	223 - 240	NAd
HEAT & COR RES	248 - 253	NAd
KEY: Colored areas indicate pricing activity. An arrow () indicates direction of price change. aTruckload, unless otherwise specified. bUnfilled, natural color, unless otherwise specified. cBased on typical or average density. dNot applicable. eNovolac and anhydride grades for coils, bushings, transformers.fNovolac and anhydride grades for resisitors, capacitors, diodes. gIn quantities of 20,000 lb. h19,800-lb load. jLME 30-day futures contract for lots of 54,564 lb..