Hikes on the Way

Prices of PP, PVC, and PET moved up last month and new price hikes were under way for PE, PP, PS, PVC, and PET.

 

PE prices up 3¢

Polyethylene prices moved up 3¢/lb in March, bringing the total increase this year to 6¢/lb. Suppliers pushed back their announced 7¢ hike again, this time to May 1. Moreover, the price increase has been modified: Suppliers now want a 7¢/lb increase only for hexene-grade LLDPE, due to tight supplies, and 4¢/lb on all other PE resins.

The London Metal Exchange (LME) short-term futures contract for May in g-p blown film butene LLDPE sold at 53.1¢/lb, up from April’s 52.2¢.

Contributing factors: Ethylene monomer contract prices moved up 1.5¢/lb in March, after remaining flat the previous month. Further price increases are not anticipated soon, as monomer supplies are plentiful.

Meanwhile, domestic PE demand is still relatively lackluster, despite a slight seasonal uptick in the last two months. Exports also appear to have slowed, particularly to Asia. Still, resin capacity utilization is a little above 90%.

Director of market research Cindy Bryan at resin purchasing consultant Resin Technology, Inc. (RTI), Fort Worth, Texas, says current market factors don’t support higher prices. “Processors are still buying as needed, due to the expectation that the price increases won’t go through—or if they do, they will be short-lived,” says Bryan.

 

PP prices on the way up

Polypropylene prices were slated to move up last month, as suppliers aimed to implement the 4¢/lb hike announced for April 1. It would bring the total increase this year to 9¢/lb. A new price hike of 3¢ was announced for May 1. Meanwhile, LME’s May futures contract for g-p injection-grade homopolymer sold at 58.4¢/lb, up from April’s 52.2¢.

Contributing factors: The major driving force is higher monomer prices. April contract prices rose 4¢/lb and there was talk of possible 1¢ to 2¢ increases for May.

PP demand in the first quarter averaged about 6% higher than the same period last year, with growth of 4% in January and February and a 10% jump in March. But these numbers include exports. Says RTI managing partner Scott Newell, “Minus those exports, domestic demand has been flat at best, if not down a bit.” Resin makers’ capacity utilization is a little above 90%, but that could change, as China has drastically curtailed U.S. resin purchases of as much as 120 million lb/month, according to Newell.

Meanwhile, a mechanical breakdown at Sunoco’s 700-million-lb PP plant in Neal, W.Va., led the company to declare force majeure in mid-April. At press time it was unknown how long it would take to restart operations or what effect this might have on tightening resin supply.

 

PVC: another 2¢ hike

The March price increase of 3¢/lb for PVC took effect, large processors say. A 3¢ increase announced for April is expected to go through, too, if pipe producers succeed in raising their prices. OxyChem, Georgia Gulf, and Formosa announced a further 3¢ hike for May 1, though Shintech reportedly trimmed that back to 2¢.

Contributing factors: Pipe demand has risen as distributors restock. Window and siding demand hasn’t picked up appreciably. The American Plastics Council’s preliminary figure for PVC resin capacity utilization for March was 88%, up from 86% in February.

 

PS hike pushed to May

Polystyrene producers got a 4¢/lb increase in March as expected, but pushed a 3¢ hike back from April 1 to May 1. Ineos and Total upsized their May 1 hike to 5¢/lb from 3¢.

Contributing factors: Feedstock prices are again squeezing PS producers. Ethylene monomer went up from 39.5¢ to 41¢/lb in March and ethylene producers asked for 3¢ to 4¢ more in April. Spot benzene was very high—in the $4/gal range in mid-April. PS producers say resin demand is improving, though current hikes are purely feedstock driven.

 

PET prices move up

PET prices rose 3¢/lb in March and 2¢ in April as suppliers were able to partially implement their 5¢ and 4¢ increases, respectively. A new 3¢/lb increase was announced for May 1 by all major players.

Contributing factors: Suppliers continue to aim for margin recovery and to regain some of the loss late last year of earlier resin price gains totaling 12¢ to 15¢/lb. Producers also hope to catch up with continued price increases in feedstocks, particularly paraxylene. They are trying to do this before the expected overcapacity situation arrives as new capacity expansions come on stream. 

 

Market Prices Effective Mid-Apr A

RESIN GRADEb ¢/LB ¢/CU INc    ABS           MED IMPACT    84 - 90      3.1 - 3.4       HI IMPACT    89 - 125      3.3 - 4.7       X-HI IMPACT    99 - 140      3.7 - 5.3       HI HEAT    89 - 110      3.3 - 3.8       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    100 - 130      3.9 - 5.1       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    46 - 52      1.5 - 1.7       FILM EXTRU    42 - 49      1.4 - 1.6       EVOH  315    13.4       FLUORO-POLYMER           CTFE    5000 - 6000     385 - 462       ECTFE    1470 - 1680     93.1 - 107.7      ETFE    1155 - 1680     70.7 - 102.8      FEP    971 - 1470      74.8 - 113.2      PFA    1785 - 2520     134.9 - 190.5       PTFE    450 - 900      34.8 - 69.7       PVDF    680 - 900      43.3 - 57.3       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    138 - 165      5.9 - 7.0       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    155 - 190      6.7 - 8.2       STRUCT FOAM    149 - 181      6.4 - 7.8       20% GLASS    235 - 255      10.1 - 11.0       FR    166 - 197      7.1 - 8.5       CD    140 - 200      6.0 - 8.6       POLYESTER (TP) PBT TYPE           UNFILLED    145 - 150      6.8 - 7.0       HI-IMP    160 - 165      8.4 - 8.6       30% GLASS, FR    190 - 210      11.2 - 12.5       STRUCT FOAM    159 - 165      NAd       PET           BOTTLE (RAILCAR)    76 - 78      3.9       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

RESIN GRADEb ¢/LB ¢/CU INc    POLYESTER THERMOSET           G-P ORTHO    140 - 145      NAd       ISOPHTHALIC    165 - 175      NAd       BIS-A    210 - 215      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    80 - 82      2.6 - 2.7       INJECTION    82 - 84      2.7       LID RESIN    84 - 86      2.7 - 2.8       LINER    79 - 81      2.6 - 2.7       CLARITY    78 - 80      2.5 - 2.6       EXTRU COATG    83 - 85      2.7       BLOW MOLD    85 - 87      2.8       LLDPE, BUTENE BASED           G-P MOLDING    67 - 69      2.3 - 2.4       LME 30-DAYj    69 - 71      2.4       FILM    53.1      1.8       ROTOMOLD    69 - 71      2.3 - 2.4       LLDPE, HAO-BASED           G-P MOLDING    72 - 74      2.4 - 2.5       LID RESIN    83 - 85      2.7 - 2.8       LINER FILM    76 - 78      2.6       HDPE           G-P INJ MOLD    69 - 71      2.4       FILM    78 - 80      2.6 - 2.7       BLOW MOLD    72 - 74      2.4 - 2.5       HMW-HDPE           BLOW MOLDING    76 - 78      2.6       FILM    77 - 79      2.6       PIPE    84 - 86      2.8       UHMW-PE  100 - 125    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    80 - 81      2.6       LME 30-DAYj    58.4      2.0       EXTRUSION FIBER    78 - 80      .5 - 2.6       PROFILES    84 - 86      2.7       RANDOM COPOL               BLOW MOLDING    82 - 84      2.6 - 2.7       FILM    83 - 85      2.6 - 2.7       INJECTION    85 - 88      2.7 - 2.8       IMPACT COPOL               MED IMP    93 - 95      3.1 - 3.2       HI IMP    96 - 98      3.2       POLYSTYRENE (RAILCAR)           G-P CRYSTAL    79 - 85      3.0 - 3.3       HI HEAT    82 - 88      3.1 - 3.3       HIPS    80 - 85      3.0 - 3.3       SUPER HI IMP    90 - 94      3.2 - 3.5       FR    98 - 106      3.7 - 4.0       STRUCT FM (FR)    105 - 108      NA       EPS           UNMODIFIED    85 - 88      NAd       MODIFIED    86 - 90      NAd       POLYSULFONE  569 - 622    25 - 28       10% GLASS 430 20.6    749 - 799      36 - 39       30% GLASS 372 20.01    659 - 699      32 - 34       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    50 - 52      NAd       PIPE    49      NAd       FILM    55 - 58      NAd       COPOLYMER FLOORING    68 - 70      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)  66 - 74    2.5 - 2.8       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    76      3.8       WHITE & IVORY    81      4.0       VINYL ESTER           COR RES    218 - 230      NAd       HEAT & COR RES    243      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..