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PE prices move up
Polyethylene prices increased further in September and October, following full implementation of the 5¢/lb hike imposed on Sept. 1. A new 6¢ increase, effective Oct. 1, was issued by most suppliers.

Contributing factors: Demand is back for all PE resins, with growth of 7% through August raising suppliers’ operating rates up into the mid-90% range. Despite the backdrop of high and volatile feedstock costs, suppliers say prices are now being driven more by supply/demand balance.

PP price hike under way
Polypropylene prices moved up 3¢/lb in September and were expected to rise further as suppliers aimed to implement a 5¢ increase due Oct. 1. Much, if not all, of that increase was expected to be in place by early November. Meanwhile, a new 3¢ hike was slated to take effect Nov. 1. It was announced by BP Amoco, Arco Polypropylene, Basell, and Dow.

Contributing factors: Continued strong demand for PP and the need to restore operating margins are among the factors cited by suppliers. Year-to-date demand growth estimates are greater than 6%. Export opportunities have also heated up significantly. PP supply continues to be tight, with year-end operating rates forecasted at 95%. Says one supplier, “We are running our plants at maximum output, and supply of PP resins remains tight.”

Continued volatility in energy markets is another factor. Crude oil prices rose to a record high of $54/barrel by mid-October, which had a significant impact on PP suppliers’ operating costs, they say. Propylene monomer prices are expected to remain at record levels over the coming months.

PVC flat in October
PVC prices gained a penny in September as expected and took a breather in October. Most producers had announced a 1¢ increase for October, but held off when Shintech delayed its hike to Nov. 1.

Contributing factors: Resin producers haven’t had to lower prices because softening domestic demand has been offset by strong export demand, particularly from Asia, producers say.
EPS up another 5¢

PS resin producers in October were implementing at least 5¢ of their previously announced increases. Nova announced a 5¢ hike on EPS for Nov. 1, but it was not supported by other majors as of mid-October.

Contributing factors: PS demand remains good. EPS demand is strong from construction sectors and supplies have tightened. Production at BASF’s Brunswick, N.J., EPS plant was curtailed for three weeks due to hurricane-related disruptions of shipments of styrene monomer from the Gulf Coast. Even when shipments were restored, BASF kept customers on force majeure allocation last month while it rebuilt inventories.

Polyesters up again
There’s still no relief for composites fabricators, whose staple polyester resins keep going up month by month. This month, Ashland, CCP, Interplastic, and Reichhold all lifted tabs on polyester resins and gel coats by 6¢/lb. AOC said it would hike prices by “a minimum of 5¢/lb.” Ashland also boosted low-profile additives and B-sides by 7¢ and epoxy vinyl esters by 10¢. In addition, Dow Plastics will hike its Derakane vinyl esters by 15¢/lb on Nov. 15.

Still more increases
Basell hiked its polybutene-1 (polybutylene) specialty polyolefin by 15¢/lb on Nov. 1. The company said that was the first price increase for the material since 2000.

Meanwhile, BASF raised prices of a number of engineering thermoplastics on Nov. 1: all nylons up a minimum of 12¢/lb, PBT and PET up 7¢/lb, polysulfone and polyethersulfone up at least 14%.