Your Business Pricing Update - September 2009

Prices of all commodity resins are rising, especially steeply for PP and PS. Feedstocks are the apparent culprit.

 

PE PRICES HIGHER

Polyethylene resin prices moved up 3¢/lb in June and July, reflecting full implementation of suppliers’ June increase after a similar hike in May. However, two 4¢ increases that were to go into effect July 1 and Aug. 1 had yet to be implemented by mid-August. The London Metal Exchange (LME) North American short-term futures contract in blown-film butene LLDPE for September was 45.5¢/lb, up from 41¢ for July and 44.9¢ for August.

Contributing factors: Pricing pressure from ethylene monomer and a rebound in exports to China were the impetus for summer price hikes, according to senior editor Mark Quinner of Houston-based PetroChem Wire. Robin Chesshier, director of client services at purchasing consultant Resin Technology Inc. (RTI), Fort Worth, Texas, notes that PE exports were up 30% in June but fell back 50% in July. In early August, Chesshier saw partial recovery and expected further export gains this month. Domestic demand remains poor, except for food and medical packaging.

For August, RTI projected PE resin tabs to remain mostly flat but September and October could be affected by possible increases in resin exports and feedstock prices and potential production problems during the hurricane season.

 

PP PRICES UP

Polypropylene prices were expected to move up 4¢/lb last month, following a 3¢ increase in May and an 8.5¢ jump that was mostly in place by early July. The LME short-term futures contract on g-p injection-grade homopolymer for September rose to 46.5¢/lb from August’s 44.9¢ and July’s 38¢.

Contributing factors: PP resin tabs have tracked the upward movement of propylene monomer prices. “This has all been feedstock driven. For the year to date, demand continues to be off—by 15% in the first quarter and 13% in the second quarter,” says Scott Newell, RTI’s director of client services for PP.

Monomer is very tight and contract prices moved up 8.5¢/lb in June and 1¢ in July to 41¢/lb. Initial agreements for August contracts called for a 4¢ increase, according to Quinner at PetroChem Wire.

 

PS SPIKES ON BENZENE

PS prices in June and July went up a total of 7¢/lb. All PS producers announced a further 6¢/lb increase for Aug. 1, which reportedly met little resistance. Ineos announced an additional hike for Aug. 15 of 4¢ for crystal and 5¢ for HIPS, while Americas Styrenics announced 5¢ and 6¢ hikes respectively for that date.

Contributing factors: Contract benzene soared unexpectedly from $2.92/gal in June to $3.65 in July. Spot prices rose as high as $3.80 because of the unexpected jump in crude oil. In mid-July benzene futures were down to $3.25.

 

PVC CREEPS HIGHER

As of mid-August, the contract price of PVC for July was expected to settle 1¢ to 1.5¢/lb higher, on top of a 1.5¢ bump in June and, in some cases, a penny in May. PVC producers all announced a 3¢ hike for Aug. 1. Westlake posted a further 3¢ for Sept. 1, while OxyChem and Georgia Gulf posted a 2¢ hike for that date.

Contributing factors: PVC demand, especially for pipe, is very weak. In mid-August, contract ethylene hadn’t settled for July or August, though the market expected a two-month settlement at 29.5¢/lb, down from 33.5¢ for June. Spot ethylene was about 25¢, and supply was expected to be ample. The motivation for the price hikes was weak margins for caustic and chlorine.

 

PET PRICES SET TO RISE

Bottle-grade PET tabs were expected to jump 3¢/lb last month, following a 1¢ rise in June. Suppliers want 3¢ to 4¢ more on Sept. 1.

Contributing factors: Higher feedstock costs are to blame. Paraxylene rose from 47¢/lb in July to 51¢ in August. Ethylene glycol moved up from 30.4¢/lb in July to 34.8¢ in August. Combined, these hikes create 3.4¢/lb higher costs for PET resin makers. “Another increase in raw materials worth 3¢/lb in resin cost is more than likely this month,” says one PET maker.
Industry sources expect PET demand this year to grow no more than 1%, after a decline last year. While demand is flat in carbonated soft drinks, bottled water is growing 2% to 3%, as are salad dressings, ketchup, salsa, pickles, mayonnaise, and spices. 

 

Market Prices Effective Mid-August A
RESIN GRADEb	¢/LB	¢/CU INc

ABS           MED IMPACT    90 - 110      340 - 412       HI IMPACT    95 - 130      359 - 491       X-HI IMPACT    110 - 150      415 - 567       HI HEAT    90 - 125      340 - 472       PIPE    85 - 95      321 - 359       SHEET    90 - 105      340 - 397       TRANSPARENT    134 - 205      506 - 774       FITTINGS    94 - 115      355 - 434       PLATING    165      623       FLAME RET    120 - 140      453 - 529       STRUCT FM    92 - 102      347 - 385       10% GLASS    134 - 145      506 - 548       30% GLASS    129 - 141      487       ABS/PC ALLOY    154 - 185      532 - 699       ABS/PVC ALLOY    139 - 144      525 - 544       ABS/NYLON ALLOY    199 - 355      752 - 1341       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    750 - 1200      48 - 76.9       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    650 - 750      24.3 - 28       30% GLASS    NAd - NAd      NAd - NAd       40% GLASS    NAd - NAd      NAd - NAd       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    158 - 173      7.9       20% GLASS    164 - 181      8.2       30% GLASS    165 - 207      9.3       EXTRUSION    133 - 171      7.7       BLOW MOLD    138 - 176      7.5       STRUCT FOAM    137 - 172      7.8       20% GLASS    219 - 243      11.0       FR    153 - 188      8.5       CD    124 - 186      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)    70 - 73      3.7       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    151 - 162      NAd       ISOPHTHALIC    175 - 196      NAd       BIS-A    210 - 235      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 - 80      2.6       INJECTION    80 - 82      2.6 - 2.7       LID RESIN    81 - 83      2.7       LINER    76 - 78      2.5 - 2.6       CLARITY    74 - 76      2.5       EXTRU COATG    81 - 83      2.7       BLOW MOLD    83 - 85      2.7 - 2.8       LLDPE, BUTENE BASED           G-P MOLDING    68 - 70      2.4       LME 30-DAYj    46.7      1.6       FILM    70 - 72      2.4       ROTOMOLD    70 - 72      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      2.5 - 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    88 - 90      2.8 - 2.9       UHMW-PE  1.22 - 1.52    4.1 - 5.1       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    78 - 80      2.6       LME 30-DAYj    46.7      1.4       EXTRUSION FIBER    76 - 78      2.5 - 2.6       PROFILES    80 - 82      2.6       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    66 - 72      2.5 - 2.7       HI HEAT    69 - 74      2.4 - 2.8       HIPS    75 - 81      2.8 - 3.0       SUPER HI IMP    82 - 89      3.1 - 3.3       FR    85 - 90      3.4 - 3.2       STRUCT FM (FR)    66 - 68      2.5       EPS           UNMODIFIED    89 - 92            MODIFIED    90 - 94      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    49 - 51      NAd       PIPE    47      NAd       FILM    54      NAd       COPOLYMER FLOORING    71 - 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    221 - 245      NAd       HEAT & COR RES    246 - 258      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..