Pricing Update - March 2006

PE, PS, and PVC prices remained flat or softened further in February, aided by slack demand and lower feedstock costs. But PP was a different story: Prices were rising and supply was tight.

 

PE prices down

Polyethylene prices dropped 2¢/lb in February, following slippage of 8¢/lb in the two previous months. That left prices about 26¢/lb above where they were at the start of 2005.

Suppliers tried to reverse the downward momentum with 5¢/lb price increases for March 1. Last month, prices were also moving up at the London Metal Exchange, where the March short-term futures contract for g-p blown film butene LLDPE sold at 58.5¢/lb, up from February’s 55.6¢ and January’s 51.26¢/lb.

Contributing factors: Resin tabs in December and January sank under the weight of weaker demand as processors drew down inventories. Ethylene monomer also dropped 3¢/lb in January, having held at about 56.3¢/lb for a few months. February contracts looked set to drop another penny.

Although resin demand started to pick up by the end of January, competitive action drove prices a couple of cents lower. However, suppliers appear to be optimistic about prospects for the March 1 price hike, even if it may not be implemented until next month. On Jan. 31, Nova Chemicals reported that repairs had been completed at its Ontario feedstock facilities and its PE and PP production was returning to normal.

Industry sources expect prices to firm up and perhaps move higher as the year progresses. There is very little inventory throughout the supply chain, and resin capacity utilization is expected to rise from the high 80s to above 90%.

 

PP prices up

Polypropylene prices were on the rise last month as suppliers fully implemented a 4¢/lb increase. Between mid-January and Feb. 1, new price initiatives brought the total increase being sought to 8¢ to 10¢/lb. Some suppliers called for an increase of 10¢ on Feb. 1 while several others issued new hikes of 4¢ to 6¢/lb for Feb. 15.

The London Metal Exchange’s March short-term futures contract for g-p injection-grade homopolymer rose to 54.9¢/lb, from February’s 52.2¢ and January’s 47.85¢/lb.

Contributing factors: One factor behind the uptick in prices is pressure from monomer. January propylene contracts were up 4.5¢/lb and February contracts were expected to gain another 5¢ or more. Unplanned reactor outages tightened monomer supply.

Resin supply is tight as well, with supplier inventory levels below 40 days, while plant utilization rates are around 95% or more. Suppliers report a large increase in demand, only partially explained by inventory replenishment.

 

PVC drops 1.5¢

PVC producers’ 2¢/lb increase for Feb. 1 was postponed when Formosa told customers in mid-February that they could cut 1.5¢/lb off their contract price, and processors expect to pay even less.

Contributing factors: Attempts to raise PVC prices in January and February failed, as PVC demand has been soft with no sign yet of spring buying or inventory building. Siding and window production remain strong, but pipe demand is soft since December.

Spot prices for vinyl feedstocks were also lower in mid-February. Natural gas was at $7/MM Btu, down from its peak of $8 to $9 last year.

 

PS prices flat

Attempts to raise polystyrene prices 6¢ in February were delayed. Both PS and EPS were expected to remain flat for the month.

Contributing factors: PS prices held in February because contract benzene tabs were so high—$2.86/gal, up from $2.46 in January—but spot benzene is down around $2.65. Coupled with a mild winter, the market decided that feedstock prices had peaked. Styrene monomer production, heavy in January, softened in February. Ethylene monomer is expected to drop 4¢/lb.

 

Nylon, ABS, SAN, epoxy up

Nylon price increases were posted by at least two suppliers. BASF hiked nylon 6 extrusion resins by 5% as of Feb. 1, and DSM said it would raise prices of nylon 6 extrusion grades by 6¢/lb in February as well.

BASF also raised prices of ABS and SAN by 4¢/lb on March 1.

Dow Chemical added 10¢/lb to cycloaliphatic epoxy prices on March 1. 

 

 

Market Prices Effective Mid-Feb A

RESIN GRADEb ¢/LB ¢/CU INc    ABS           MED IMPACT    80 - 90      3.0 - 3.4       HI IMPACT    85 - 125      3.2 - 4.7       X-HI IMPACT    95 - 140      3.6 - 5.3       HI HEAT    85 - 110      3.8       PIPE    85 - 110      3.2 - 4.1       SHEET    90 - 110      3.4 - 4.2       TRANSPARENT    125 - 165      4.9 - 6.4       FITTINGS    85 - 115      3.2 - 4.3       PLATING    95 - 105      3.5 - 3.9       FLAME RET    120 - 140      4.6 - 5.9       STRUCT FM    83 - 97      3.6 - 4.3       10% GLASS    125 - 140      5.0 - 5.6       30% GLASS    116 - 136      5.3 - 6.3       ABS/PC ALLOY    145 - 180      5.5 - 6.8       ABS/PVC ALLOY    130 - 135      5.8 - 6.1       ABS/NYLON ALLOY    190      7.3       ACETAL           HOMOPOL    130 - 147      6.7 - 7.3       20% GLASS    160 - 220      9.0 - 12.4       COPOLYMER    133 - 145      6.8 - 7.4       25% GLASS    160 - 230      8.1 - 11.7       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  265    11.3       FLUORO-POLYMER           CTFE    2500 - 5500     193 - 424       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    143 - 150      6.9       HI-IMP    154 - 165      7.6       30% GLASS, FR    185 - 207      11.9       STRUCT FOAM    159 - 165      NAd       PET           BOTTLE (RAILCAR)    84 - 87      4.3 - 4.4       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    135 - 140      NAd       ISOPHTHALIC    160 - 170      NAd       BIS-A    205 - 210      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    86 - 88      2.8 - 2.9       INJECTION    89 - 91      2.9 - 3.0       LID RESIN    91 - 93      3.0 - 3.1       LINER    87 - 89      2.9       CLARITY    85 - 87      2.8 - 2.9       EXTRU COATG    89 - 91      2.9 - 3.0       BLOW MOLD    91 - 93      3.0 - 3.1       LLDPE, BUTENE BASED           G-P MOLDING    75 - 77      2.5 - 2.6       LME 30-DAYj    58.5      2.0       FILM    77 - 79      2.6       ROTOMOLD    79 - 81      2.6 - 2.7       LLDPE, HAO-BASED           G-P MOLDING    89 - 91      2.9 - 3.0       LID RESIN    90 - 92      3.0       LINER FILM    92 - 94      3.0 - 3.1       HDPE           G-P INJ MOLD    76 - 78      2.6 - 2.7       FILM    86 - 88      2.9 - 3.0       BLOW MOLD    80 - 82      2.7 - 2.8       HMW-HDPE           BLOW MOLDING    85 - 87      2.9 - 3.0       FILM    87 - 89      3.0       PIPE    92 - 94      3.0 - 3.1       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    357 - 404      21.2 - 24.0       55% GLASS/MINERAL    289 - 310      20.8 - 22.3       65% GLASS/MINERAL    226 - 273      15.5 - 18.7       POLYPROPYLENE (RAILCAR)           G-P HOMOPOL INJECTION    77 - 79      2.5 - 2.6       LME 30-DAYj    54.9      1.8       EXTRUSION FIBER    76 - 78      2.5       PROFILES    81 - 83      2.6 - 2.7       RANDOM COPOL               BLOW MOLDING    82 - 84      2.7       FILM    83 - 85      2.7 - 2.8       INJECTION    80 - 82      2.6 - 2.7       IMPACT COPOL               MED IMP    91 - 94      2.9 - 3.0       HI IMP    94 - 98      3.0 - 3.2       POLYSTYRENE (RAILCAR)           G-P CRYSTAL    70 - 78      2.6 - 2.9       HI HEAT    73 - 81      2.7 - 3.0       HIPS    71 - 79      2.7 - 3.0       SUPER HI IMP    81 - 87      3.0 - 3.3       FR    89 - 97      3.3 - 3.6       STRUCT FM (FR)    105 - 108            EPS           UNMODIFIED    85 - 88      NAd       MODIFIED    86 - 90      NAd       POLYSULFONE  605    27 - 27.3       10% GLASS 430 20.6    557 - 612      24.9 - 25       30% GLASS 372 20.01    557 - 562      24.9 - 25       POLYURETHANE (TP)           ESTER TYPE    185 - 255      8 - 11       ETHER TYPE    245 - 295      10.6 - 13       PU ISOCYANATES           POLYMERIC MDI    120 - 135      NAd       80/20 TDI    90 - 98      NAd       PVC RESIN (RAILCAR)           G-P HOMOPOL    57 - 59     NAd       PIPE    54 - 56     NAd       FILM    66 - 68     NAd       COPOLYMER FLOORING    73 - 75     NAd       DISPERSION HOMOPOLY    84 - 90      NAd       COPOLYMER    89 - 93      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    287 - 337      10.4 - 12.3       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    195 - 207      NAd       HEAT & COR RES    220      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..