No End to Resin Price Hikes

PE gets another hike

By the end of March, polyethylene prices had moved up 11¢/lb since the start of the year. The last steps in that process were the implementation of a 5¢/lb increase and a 6¢ energy surcharge. That surcharge was due to be lifted on April 1, but suppliers replaced it with a 6¢/lb increase on March 15. Another increase of 5¢/lb was also planned for April 15.

Meanwhile, DuPont announced in early March that it would raise prices of several ethylene copolymers and LDPEs, effective immediately or as contracts allow. A 6¢/lb hike was posted on Bynel, Appeel, Elvax, and Selar copolymers and LDPE. A temporary increase of 10¢/lb was applied to Surlyn, Conpol, Transcend, Fusabond, and DuPont 20 Series resins. Nucrel acid copolymers got a temporary 6¢ hike.

Contributing factors: Suppliers used the energy surcharge as an attempt to catch up with soaring feedstock costs. They also limited buyers with 60-day price protection to only 30 days. From now on, suppliers apparently want to issue 30-day notice of price hikes and eliminate price protection altogether.
PE resin supply has grown tighter, particularly for LLDPE film grades, for which inventory levels are down to 30 days. Inventories for LDPE and HDPE are reportedly over 45 days.

 

PP prices strong

Polypropylene prices remain firm, following the implementation of a total of 6¢ to 8¢/lb in the first quarter. An additional 5¢/lb price hike nominally was effective April 1. In addition, Solvay Engineered Polymers announced May 1 increases on TPOs of 4¢/lb in truckloads and 7¢ for ltl shipments.

Contributing factors: Higher propylene monomer costs, tight resin supply, and good demand could serve to bolster suppliers’ effort to raise PP resin tabs further. Basell, for example, sent out a letter in late March advising its customers that as of April 1, total increases of 13¢/lb since January would be fully implemented.

Suppliers’ margins remain tight as propylene monomer prices move up and PP resin hikes take longer to implement due to price protection. Polymer-grade propylene was up 8¢/lb from January through March to a contract-price level of 27.5¢/lb, while spot prices were at 30¢ to 31.5¢/lb. Monomer increases of 2¢ to 3¢/lb have been proposed for April.

Meanwhile, PP resin supply has tightened and is expected to remain snug for the next two years, despite the start-up in March of the 775-million-lb/yr ConocoPhillips plant in Linden, N.J.

 

PVC going up again

PVC producers have supported 2¢ monthly increases in January, February, March, and April. At press time in mid-April, Formosa had announced the same for May 1. (Formosa also hiked dispersion resins 3¢/lb in March.)
Producers of PVC compounds haven’t been able to raise prices as far or as fast. Compounders tried a 3¢/lb increase for Feb. 15, but PolyOne delayed its increase to April 1, forcing most others to do likewise. PolyOne has since called for a 5¢/lb hike on May 1.

Contributing factors: VCM supplies tightened as monomer suppliers slashed production during the sudden energy-cost spike of late February and early March. Chor-alkali producers are also trying to raise the price of chlorine, which makes up 60% of the weight of PVC. Anticipating further monomer hikes, resin producers are trying to get whatever increases they can during the spring construction season when demand is usually highest. This year, however, PVC demand is spotty and siding sales appear to be slower than in 2002.

 

Mayhem in PS prices

After starting the year with two 3¢ hikes in January and February, followed by two 4¢ increases in March and April, three of the largest polystyrene producers created havoc for their larger customers by adding a sudden 4¢ increase for March 1 without any price protection. It comes on top of the previously announced 4¢ increase that did carry price protection. BASF and Dow called their surprise hikes an “energy and raw-material surcharge.” While Nova and BASF imposed these surcharges on March 1, Dow gave its customers until March 10. The 4¢ surcharges remained in place for April. One of the three suppliers believes the surcharge will come off in May.

Customers got a bit softer treatment from two PS producers that are integrated with oil companies. Chevron imposed only a 2¢ TVA on top of the previously announced 4¢ hike. Fina added another 4¢ to its announced 4¢ for March 1 but retained price protection.

Contributing factors: The brief oil-price spike and continued high benzene prices drove suppliers to impose the 4¢ surcharge. Because market demand is strong during the spring high season, PS buyers must swallow their distress about having their contracts pushed aside.

 

Engineering resins go up

DuPont and Rhodia joined BASF in nylon price hikes. DuPont’s increase of 10% became effective April 15. Rhodia sources say they’ll raise prices 7¢/lb this spring.

DuPont followed the lead of BASF and Ticona by raising acetal tabs 10% April 15.

In addition, DuPont added 10% to prices of Rynite PET and Crastin PBT on April 15. BASF, Ticona, and GE had already hiked PBTs, generally by 9¢/lb.
Thermoplastic polyurethanes (TPUs) from BASF and Noveon also went up 5¢ on April 15. Bayer will boost prices of its TPUs and TPU alloys by an undisclosed amount on May 1. TPU prices have not generally increased since the fall of 2000. Dow has not yet issued a price increase on TPUs, and Huntsman could not be reached for comment.

Eastman hiked its specialty polyesters and copolyesters by another 7¢/lb on May 1. Eastman last raised prices on its Dura Star, Provista, Eastar, Ecdel, Eastalloy, Spectar, Eastapak, and Eastman products on March 1.

In addition, Eastman raised tabs of Tenite cellulose acetate by 7¢/lb on May 1.

 

 

Market Prices Effective Mid-Apr A

RESIN GRADEb ¢/LB ¢/CU INc    ABS           MED IMPACT   62 - 82     2.4 - 3.1       HI IMPACT   72 - 85     2.7 - 3.2       X-HI IMPACT   82 - 105     3.1 - 3.9       HI HEAT   85 - 95     3.2 - 3.6       PIPE   58 - 62     2.2 - 2.3       SHEET   75 - 90     3.0 - 3.7       TRANSPARENT   125 - 165     4.9 - 6.4       FITTINGS   65 - 78     2.4 - 2.9       PLATING   95 - 105     3.5 - 3.9       FLAME RET   105 - 135     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   135 - 165     5.6 - 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 - 137     6.8 - 7.0       25% GLASS   160 - 215     9.2 - 12.3       ACRYLIC           G-P   72 - 102     3.0 - 4.3       IMPACT   130 - 191     5.4 - 7.9       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   184     7.9       CAP   184     7.9       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   4500     346.6       ECTFE   1400 - 1600     108.3 - 123.8     ETFE   1100 - 1600     73.6 - 107.1      FEP   925 - 1400     71.3 - 107.9      PFA   1700 - 2400     131.6 - 185.8     PTFE   450 - 900     34.8 - 69.7       PVDF   650 - 800     41.4 - 50.9       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   124 - 139     6.2 - 7.0       MIN FILLED   119 - 132     5.9 - 6.6       30% GLASS   150 - 160     7.2 - 7.7       TYPE 66   140 - 155     7.4 - 8.2       MIN FILLED   140 - 148     7.4 - 7.8       30% GLASS   180 - 190     8.8 - 9.3       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  55.5 - 87.5    2.8 - 4.0       REINFORCED GRADES   100.5 - 267.5    6.0 - 15.9       POLYAMIDE-IMIDEg           UNFILLED   2310 - 3045     124.7 - 164.4     30% GLASS   2250 - 2985     130.4 - 173.0     30% CARBON FIB.   3260 - 3950     173.6 - 210.5     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   127 - 145     5.4 - 6.2       BLOW MOLD   140 - 170     6.0 - 7.3       STRUCT FOAM   149 - 181     6.4 - 7.8       20% GLASS   235 - 255     10.1 - 11.0       FR   166 - 197     7.1 - 8.5       CD   82 - 100     3.5 - 4.3       POLYESTER (TP) PBT TYPE           UNFILLED   143 - 150     6.9       HI-IMP   154 - 165     7.6       30% GLASS, FR   165 - 187     10.0       STRUCT FOAM   159 - 165     NAd       PET           BOTTLE (RAILCAR)   63 - 67     3.2 - 3.4       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   53 - 57     NAd       ISOPHTHALIC   70 - 80     NAd       BIS-A   120 - 150     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   63 - 66     2.1 - 2.2       INJECTION   63 - 66     2.1 - 2.2       LID RESIN   64 - 67     2.1 - 2.2       LINER   62 - 65     2.1       CLARITY   60 - 62     2.0       EXTRU COATG   63 - 65     2.1       BLOW MOLD   64 - 67     2.1 - 2.2       LLDPE, BUTENE BASED           G-P MOLDING   49 - 51     1.6 - 1.7       FILM   51 - 53     1.7 - 1.8       ROTOMOLD   53 - 55     1.8       LLDPE, HAO-BASED           G-P MOLDING   55 - 57     1.9       LID RESIN   61 - 64     2.0 - 2.1       LINER FILM   56 - 58     1.9       HDPE           G-P INJ MOLD   50 - 52     1.7 - 1.8       FILM   59 - 61     2.0 - 2.1       BLOW MOLD   53 - 55     1.8 - 1.9       HMW-HDPE           BLOW MOLDING   60 - 62     2.1       FILM   63 - 65     2.2       PIPE   67 - 69     2.3 - 2.4       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   340 - 385     20 - 23       55% GLASS/MINERAL   275 - 295     18       65% GLASS/MINERAL   205 - 260     15 - 19       POLYPROPYLENE (RAILCAR)           G-P HOMOPOL INJECTION   45 - 47     1.5 - 1.6       EXTRUSION FIBER   44 - 46     1.4 - 1.5       PROFILES   46 - 49     1.5 - 1.6       RANDOM COPOL               BLOW MOLDING   50 - 52     1.6 - 1.7       FILM   48 - 52     1.6 - 1.7       INJECTION   47 - 49     1.6       IMPACT COPOL               MED IMP   60 - 63     1.9       HI IMP   63 - 66     1.9 - 2.0       POLYSTYRENE (RAILCAR)           G-P CRYSTAL   50 - 57     18. - 2.1       HI HEAT   49 - 56     1.8 - 2.1       HIPS   52 - 58     1.9 - 2.2       SUPER HI IMP   62 - 68     2.3       FR   87 - 98     3.2 - 3.7       STRUCT FM (FR)   91 - 93     na       EPS           UNMODIFIED   80 - 82     NAd       MODIFIED   82 - 85     NAd       POLYSULFONE  430 - 510    19 - 22.8       10% GLASS 430 20.6   605 - 610     27 - 27.2       30% GLASS 372 20.01   555 - 560     24.8 - 25       POLYURETHANE (TP)           ESTER TYPE   185 - 255     8 - 11       ETHER TYPE   245 - 295     10.6 - 13       PU ISOCYANATES           POLYMERIC MDI   105 - 115     NAd       80/20 TDI   110 - 120     NAd       PVC RESIN (RAILCAR)           G-P HOMOPOL   36 - 39     NAd       PIPE   34 - 37     NAd       FILM   46 - 48     NAd       COPOLYMER FLOORING   46 - 48     NAd       DISPERSION HOMOPOLY   59 - 63     NAd       COPOLYMER   63 - 67     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   67 - 78     3.6 - 4.1       WHITE & IVORY   72     3.8       VINYL ESTER           COR RES   147     NAd       HEAT & COR RES   161     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.