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PS buyers face 24¢ hikes
Polystyrene producers supported a 3¢ increase for July 1, effective Aug. 1 for large buyers. They also imposed a 4¢ hike for Aug. 1. Then Dow, BASF, Chevron, and Fina, announced eye-popping 10¢/lb hikes for Aug. 16 or 18 and added another 2¢ at the same time by voiding a TVA that dated back several months. The 2¢ was effective immediately. Nova skipped the TVA and simply announced a 12¢ hike for Aug. 16. Not stopping there, Nova, Dow, and BASF called for another 8¢ bump on Sept. 15, raising the total of new hikes to 24¢/lb. EPS bead prices shot up too—14¢ for August plus 8¢ for September.

Contributing factors: Styrene monomer increases totaling 20¢/lb were announced in July through Sept., propelled by runaway benzene prices. Contract benzene tabs were $3.85/gal for August, with spot prices for September in the $4.20 to $4.25 range. PS demand has been surprisingly steady, despite soaring prices.

PE hike under way
Polyethylene prices were on the way up in July and August as suppliers implemented a 4¢/lb increase from July 1. Larger contract buyers should feel the increase this month. All major suppliers posted a new hike of 5¢/lb for Sept. 1.

Contributing factors: Strong demand, continued high and volatile energy and feedstock costs, and suppliers’ need to restore profit margins are said to underlie the price increase.

PP prices moving up
Polypropylene prices rose last month, as suppliers aimed to implement their Aug. 1 increase of 3¢/lb. A new 3¢/lb increase was announced for Sept. 1 by Basell and BP Amoco.

Contributing factors: The new increase is being attributed to strong demand, tight supply, volatile energy prices, and suppliers’ need to restore operating margins to acceptable levels. Propylene monomer prices held in July at 31.5¢/lb and are expected to remain above 30¢/lb indefinitely.

PET prices rising
PET bottle-resin prices rose 2¢/lb in June, and suppliers tried for another 2¢ July.

Contributing factors: Higher feedstock costs are the culprit. Demand is said to be 7% to 9% higher than last year. Some sources see a continued rise in PET prices until 2005, when global overcapacity should reverse the trend.

PVC holds even
PVC resin prices were flat in July, despite an announced 2¢ hike. In some markets, prices may have actually eroded slightly. Resin makers tried to get 1¢ of that increase in August with hopes for the second penny in September.

Contributing factors: Pipe prices are sagging, though processors say demand is still good.

Engineering resin hikes
BASF announced a 15¢ hike on virgin and recycled nylons for Aug. 4. But DuPont posted increases of only 9¢ for standard nylons and 6% for high-performance grades as of Aug. 23. Solutia raised nylon 66 by 10% on Aug. 15. BASF followed with an 11¢ hike on fiber and extrusion grades for Sept. 1.

BASF also came out with a 10¢/lb hike on virgin and recycled PBT for Aug. 4, but DuPont’s hike was 9¢ for Aug. 23.

Ticona lifted acetals 10¢/lb on Sept. 1.

BASF hiked ABS, SAN, ASA, and alloys 14¢/lb Aug. 1.

On Aug. 9, CYRO Industries added 8¢ to acrylic price—the third boost in 100 days, for a total of 21¢/lb.

Thermosets and foams rise Unsaturated polyester tabs continued their monthly march upward with increases of 10¢/lb for Sept. 6 from Reichhold, AOC, and Cook (the latter two hiked gel coats the same amount).

In addition, Durez raised solid phenolics by 10¢ (with a TVA of 6¢) on Aug. 2, while liquids went up 6¢ (with a TVA of 3.6¢). These follow an 8¢/lb hike in July and 5¢ in May.

In early August, BASF and Dow imposed an immediate surcharge on MDI of 0.5¢/lb for each 10¢/gal that benzene exceeds a base price of $1.50/gal. In August those surcharges were 12.5¢/lb.