Last PE Hike For A While?

Polyethylene prices moved up 3¢/lb in January, and suppliers were aiming to push through 3¢ more last month. Moreover, a new 5¢/lb hike had been announced for Feb. 1. Still, the London Metal Exchange (LME) North American futures contract for March in blown film butene LLDPE was 65.7¢/lb, up from February’s 64.7¢.

Contributing factors: High energy costs and strong export sales in December and January helped resin suppliers implement half of their intended 6¢/lb price hike. This was despite lackluster domestic demand, particularly in the film arena. Says Mike Burns, global business manager for PE at resin purchasing consultant Resin Technology, Inc. (RTI), Forth Worth, Texas, “While the resin producers are feeling downward pricing pressure from the domestic side, the PE market is currently being driven by energy costs and global demand. One wild card is whether exports to China rebound following the Chinese New Year. The other is energy prices.” He and other industry sources have some doubts that the remaining 3¢/lb from the January hike will go through, and they expect the February 5¢ hike to fail.

January ethylene monomer contract prices stayed flat at 61.5¢/lb, despite attempted increases. Ethylene spot prices dropped below 50¢/lb, the lowest since last September.

PP Prices Flat

Polypropylene prices were flat last month, after moving up 1¢ to 2¢/lb in January. Suppliers have been unable to implement 9¢ worth of outstanding hikes from December and January. An additional increase of 2¢/lb for Feb. 1 was initiated by Basell but did not gain industrywide support. However, the LME’s March futures contract for g-p injection-grade homopolymer sold at 68.4¢/lb, up from February’s 67.8¢.

Contributing factors: Demand slumped in January and February, and industry sources saw no improvement coming in the short term. Export demand also has not rebounded to last year’s high levels, except from South America. Resin suppliers’ plant operating rates have dropped into the 80% to 85% range and their inventory build-up is nearing 40 days.

Propylene monomer prices rose only 0.5¢/lb in January, out of the 3¢ to 4¢ originally sought. Spot prices had been dropping, and Newell and other industry sources expected February contracts to fall another 2¢ to 3¢.

March PS Hike Posted

Dow broke ranks with other polystyrene suppliers and lowered its Feb. 1 increase from 4¢ to 2¢/lb. Then Chevron, Total, and Ineos Nova all issued a 5¢ increase for March 1 (2¢ of it representing a TVA from February’s hike), but Dow announced only a 3¢ hike.

EPS producers all supported a price hike for March 1, the first in months. Flint Hills (formerly Huntsman) and BASF posted for 3¢, Nova wants 4¢.

Contributing factors: PS demand was only moderate in February, and the price hikes were feedstock-driven. Contract benzene for February was $3.54/gal and spot prices were around $3.80.

PET Prices Flat For Now

PET resin tabs have remained flat since December, but a price increase could be coming next month, spurred by the usual seasonal upswing in demand.

Contributing factors: Big price increases last year in feedstocks--paraxylene and ethylene glycol--prompted an attempt to raise prices last month. That effort failed, in part because prices of ethylene glycol then dropped 10¢ to 15¢/lb, which amounts to 3¢ to 5¢ of resin price. However, the price of paraxylene has remained high and is expected by some industry sources to move up further in the second quarter. A PET price hike is very likely to emerge in early in that quarter. While demand for PET has been soft, it typically picks up in the second quarter, too.

PVC Demand Weak, Price In Doubt

Resin producers and buyers alike complain of the accounting difficulty when resin prices aren’t known until a month or two after purchase. PVC may have risen 2¢ in January, but that won’t be decided until the indexes that now determine most pricing come out in late February. Over half of big buyers’ prices are based on an index or indexes. The rest of the market was invoiced 2¢ more.

Contributing factors: Pipe demand is very weak and prices are down. Resin producers’ operating rates are believed to be in the mid 80s, supported mainly by strong exports based on the weak dollar.

More Price Increases

DuPont raised prices of Elvax EVAs by 9¢/lb on March 1. In engineering resins, DuPont also hiked its Delrin acetals by 15¢/lb on Jan. 25. Also, Nycoa raised tabs on its nylon 6 products by 8¢/lb for truckload shipments on Feb. 11. And Lubrizol Advanced Materials added 16¢/lb to Estane TPU prices on March 1. 

RESIN GRADEb ¢/LB ¢/CU INc    ABS           MED IMPACT    84 - 95      3.2 - 3.6       HI IMPACT    89 - 125      3.3 - 4.7       X-HI IMPACT    99 - 140      3.7 - 5.3       HI HEAT    89 - 110      3.3 - 3.8       PIPE    89 - 100      3.7 - 3.8       SHEET    94 - 110      3.5 - 4.2       TRANSPARENT    129 - 200      5.6 - 8.8       FITTINGS    89 - 110      3.5 - 4.3       PLATING    160      6.0       FLAME RET    124 - 140      4.6 - 5.9       STRUCT FM    87 - 97      3.2 - 4.3       10% GLASS    129 - 140      4.8 - 5.6       30% GLASS    124 - 136      4.6 - 6.3       ABS/PC ALLOY    149 - 180      5.5 - 6.8       ABS/PVC ALLOY    134 - 139      5.0 - 5.2       ABS/NYLON ALLOY    194 - 350      9.0 - 16       ACETAL           HOMOPOL    151 - 172      7.7 - 8.7       20% GLASS    171 - 235      8.7 - 11.9       COPOLYMER    144 - 160      7.3 - 8.1       25% GLASS    171 - 245      8.7 - 12.4       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    69 - 71      2.3 - 2.4       FILM EXTRU    67 - 69      2.3       EVOH  330    15       FLUORO-POLYMER           CTFE    5000 - 6000      385 - 462       ECTFE    1200 - 1680      90.7 - 120       ETFE    1205 - 1730      80.7 - 115.8       FEP    971 - 1470      74.8 - 113.2       PFA    1550 - 2520      120 - 195       PTFE    500 - 950      33.5 - 63.6       PVDF    693 - 1050      44.4 - 67.2       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    171 - 182      7.4 - 7.9       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    150 - 185      7.0 - 7.5       STRUCT FOAM    149 - 181      6.4 - 7.8       20% GLASS    235 - 255      10.1 - 11.0       FR    166 - 197      7.1 - 8.5       CD    135 - 195      5.8 - 8.4       POLYESTER (TP) PBT TYPE           UNFILLED    145 - 150      6.8 - 7.3       HI-IMP    165 - 175      7.8 - 8.3       30% GLASS, FR    195 - 215      9.2 - 10.1       STRUCT FOAM    159 - 165      NAd       PET           BOTTLE (RAILCAR)    78 - 80      4.0       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    142 - 152      NAd       ISOPHTHALIC    170 - 185      NAd       BIS-A    205 - 225      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    81 - 83      2.6 - 2.7       INJECTION    83 - 85      2.7       LID RESIN    85 - 87      2.7 - 2.8       LINER    80 - 82      2.6       CLARITY    79 - 81      2.6       EXTRU COATG    84 - 86      2.7       BLOW MOLD    86 - 88      2.7 - 2.8       LLDPE, BUTENE BASED           G-P MOLDING    78 - 80      2.5 - 2.6       LME 30-DAYj    80 - 85      2.6       FILM    80 - 82      2.6       ROTOMOLD    80 - 82      2.6       LLDPE, HAO-BASED           G-P MOLDING    81 - 83      2.6       LID RESIN    91 - 93      2.9       LINER FILM    84 - 86      2.7       HDPE           G-P INJ MOLD    78 - 80      2.6       FILM    87 - 89      2.8 - 2.9       BLOW MOLD    88 - 91      2.8 - 2.9       HMW-HDPE           BLOW MOLDING    85 - 87      2.7 - 2.8       FILM    86 - 88      2.7 - 2.8       PIPE    93 - 95      3.0       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    450 - 520      27.0 - 31.2      55% GLASS/MINERAL    345 - 420      22.7 - 27.7      65% GLASS/MINERAL    270 - 315      18.9 - 22.1      POLYPROPYLENE (RAILCAR)           G-P HOMOPOL INJECTION    83 - 85      2.6 - 2.7       LME 30-DAYj    68.4      2.2       EXTRUSION FIBER    81 - 83      2.5 - 2.6       PROFILES    86 - 88      2.7 - 2.8       RANDOM COPOL               BLOW MOLDING    87 - 89      2.8       FILM    87 - 89      2.8       INJECTION    86 - 88      2.7 - 2.8       IMPACT COPOL               MED IMP    97 - 99      3.1 - 3.2       HI IMP    99 - 101      3.2       POLYSTYRENE (RAILCAR)           G-P CRYSTAL    88 - 94      3.3 - 3.5       HI HEAT    91 - 97      3.4 - 3.6       HIPS    89 - 94      3.3 - 3.5       SUPER HI IMP    99 - 103      3.7 - 3.9       FR    104 - 110     3.9 - 4.1       STRUCT FM (FR)    105 - 108      NA       EPS           UNMODIFIED    85 - 88      NAd       MODIFIED    86 - 90      NAd       POLYSULFONE  650 - 750    29 - 33       10% GLASS 430 20.6    799 - 875      36 - 39       30% GLASS 372 20.01    699 - 775      31 - 35       POLYURETHANE (TP)           ESTER TYPE    185 - 255      8 - 11       ETHER TYPE    245 - 295      10.6 - 13       PU ISOCYANATES           POLYMERIC MDI    125 - 145      NAd       80/20 TDI    135 - 145      NAd       PVC RESIN (RAILCAR)           G-P HOMOPOL    58 - 60      NAd       PIPE    57      NAd       FILM    63 - 65      NAd       COPOLYMER FLOORING    69 - 74      NAd       DISPERSION HOMOPOLY    81 - 87      NAd       COPOLYMER    86 - 90      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)  80 - 88    3.0 - 3.3       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    300 - 350      10.9 - 12.7      POLYESTER    200 - 310      8.8 - 13.6       STYRENIC    82 - 237      2.9 - 8.3       UREA MOLDING COMPOUND           BLACK & BROWN               WHITE & IVORY               VINYL ESTER           COR RES    218 - 235      NAd       HEAT & COR RES    243 - 248      NAd