Sluggish

Demand for most commodity resins was generally lackluster in the first quarter and the beginning of the second. Both resin and monomer prices were generally soft. Nonetheless, polyethylene suppliers announced price increases in hopes of halting further erosion. Suppliers also are watching closely to see if processors start stocking up on resin as the hurricane season approaches.

 

PE prices down

Polyethylene prices dropped further in April, so the total slippage since December reached 18¢/lb. The drop last month was 2¢ as compared with 4¢ declines in each of the previous three months, perhaps signaling that prices are hitting bottom. Resin suppliers are attempting to show as much with a new price hike of 6¢/lb issued by most of the major players for May 1. Chevron Phillips and Formosa asked for only 3¢/lb.

There’s also upward price movement at the London Metal Exchange (LME), where May’s short-term futures contract in g-p butene-LLDPE for blown-film was 53.8¢/lb, up from April’s 51¢/lb.

Contributing factors: Some resin suppliers see low resin inventories at processors as a factor in their favor. They expect to implement their new prices, at least partially, either this month or in June.

Ethylene monomer contract prices dropped 3.5¢/lb in February and 2.5¢ in March. According to resin-purchasing consultant Resin Technology Inc. (RTI) in Fort Worth, Texas, monomer buyers are looking to shave off another 1¢ to 3¢ to close the unusually big gap between contract and spot prices. March contract prices stood at 47.5¢/lb and spot prices were in the low 30¢/lb range.

 

PP prices flat

Polypropylene prices were stable in early April, after moving up 4¢ to 6¢/lb in the previous two months. There was industry chatter that a new price increase would be announced for May or June. However, the LME’s May short-term futures contract for g-p injection-grade PP homopolymer is 50.1¢/lb, down from April’s 51¢/lb.

Contributing factors: Attractive resin deals were available into early April, and RTI sources said some processors were already “getting back” 4¢/lb of those earlier price hikes. Still, suppliers expect some uptick in demand in the second quarter, and perhaps a bit more. Says one major supplier, “There is lots of talk about hurricane stockpiling.”

Propylene monomer prices moved up a total of 6¢/lb from January to March, and April contracts seemed likely to rise another penny or two.

 

PVC falls 2¢

As expected, PVC resin prices lost 2¢/lb in March, while resin producers delayed their pending 2¢ increase yet again, this time to May 1. It was originally announced for January 1.

Contributing factors: PVC demand was still weak in mid-April, with no sign of the usual spring build-up. Falling ethylene monomer prices are also putting downward pressure on PVC.

 

PS continues to weaken

Polystyrene prices, already down about 6¢ from November through March, were expected to lose another 1¢ to 2¢/lb in April. Styrene monomer was flat in mid-April, but spot monomer fell as low as 45¢/lb, which was below cost.

Contributing factors: Polystyrene is still in oversupply, and demand is weak for this time of year, which is usually fairly strong. March demand was perhaps 10% below normal for what is usually a strong month. High resin prices have hurt PS in cup, lid and cutlery markets, which have shifted to paper, PET, and PP respectively. In durable goods, however, PS is still strong for the time of year, resin producers say.

 

Composite resins rise

Owing to continuing petrochemical supply disruptions caused by Hurricane Katrina, isopthalic acid feedstock for unsaturated polyesters has been more expensive and hard to get. That’s the reason cited by AOC, which hiked all its isophthalic-based resins and gel coats by 3¢/lb on May 1. 

 

Market Prices Effective Mid-Apr 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)    82 - 87      4.1 - 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    82 - 84     2.6 - 2.7      INJECTION    85 - 87     2.7 - 2.8      LID RESIN    87 - 89     2.8      LINER    83 - 85     2.6 - 2.7      CLARITY    81 - 83     2.6      EXTRU COATG    85 - 87     2.7 - 2.8      BLOW MOLD    87 - 89     2.8      LLDPE, BUTENE BASED           G-P MOLDING    71 - 73     2.4      LME 30-DAYj    73 - 75     2.4 - 2.5      FILM    53.8      2.0       ROTOMOLD    75 - 77     2.4 - 2.5      LLDPE, HAO-BASED           G-P MOLDING    74 - 76     2.4 - 2.5      LID RESIN    83 - 85     2.7 - 2.8      LINER FILM    78 - 80     2.6 - 2.7      HDPE           G-P INJ MOLD    72 - 74     2.5      FILM    82 - 84     2.7 - 2.8      BLOW MOLD    76 - 78     2.6 - 2.7      HMW-HDPE           BLOW MOLDING    81 - 83     2.7 - 2.8      FILM    83 - 85     2.8      PIPE    88 - 90     2.9      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    76 - 78      2.5       LME 30-DAYj    50.1      1.9       EXTRUSION FIBER    75 - 77      2.5 - 2.6       PROFILES    80 - 82      2.6 - 2.7       RANDOM COPOL               BLOW MOLDING    81 - 83      2.6 - 2.7       FILM    80 - 82      2.6 - 2.7       INJECTION    78 - 80      2.6       IMPACT COPOL               MED IMP    89 - 91      2.9       HI IMP    92 - 94      2.9 - 3.0       POLYSTYRENE (RAILCAR)           G-P CRYSTAL    64 - 72     2.4 - 2.7      HI HEAT    67 - 75     2.5 - 2.8      HIPS    65 - 72     2.4 - 2.7      SUPER HI IMP    75 - 81     2.8 - 3.0      FR    83 - 91     3.1 - 3.4      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    53 - 55     NAd       PIPE    50 - 52     NAd       FILM    61 - 64     NAd       COPOLYMER FLOORING    71 - 73     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    205 - 217      NAd       HEAT & COR RES    230      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..