Monomers Drive Up Polyolefin Prices

Polyolefin prices were on the way up in October, as resin suppliers pointed to rising monomer costs to justify their previously announced resin hikes. So far this year, polyethylene prices have gained a total of 15¢ to 17¢/lb (the larger figure is for hexene and octene LLDPE). Polypropylene prices have risen a total of 11¢/lb.

According to Mike Burns, global business director for polyethylene at resin purchasing consultant Resin Technology, Inc. (RTI), Fort Worth, Texas, this is the first year in recent memory in which 10 months of continuous PE price increases were implemented—five in total—with no price reversals. PE suppliers saw double-digit profit margins (10¢ to 17¢/lb, Burns says) through August, compared with polypropylene suppliers’ margins of only 2¢ to 3¢/lb.

Despite lackluster domestic demand for polyolefins, an exceptionally strong export market for most of this year has kept resin producers’ plant operating rates above 90% and their inventories in balance. Still, industry sources expect weakening domestic and export demand to bring resin buyers some price relief late in the year—though less than occurred at the end of 2006.

Editor’s note: Based on new information, we have adjusted our polyolefin prices in the table lower than last month, in order to bring them closer to market reality.

 

Polyethylene prices up

Last month, it looked like PE producers would push through the full 4¢ increase that had been announced for Sept. 1. However, they face uncertain prospects of implementing the 5¢ hike announced for Sept. 15.

The London Metal Exchange (LME) short-term futures contract for November in blown film butene-LLDPE sold at 57.3¢/lb, slightly up from October’s 57.1¢.

Contributing factors: Suppliers attribute this price hike directly to increased ethylene monomer contract prices, which rose 3¢ to 52.5¢/lb in September, and further 2¢ to 4¢ increases loomed for October. Monomer prices are linked to escalating ethane prices and supply tightness. Another factor is a recent surge of resin exports.

“This latest price increase will not help domestic processors, as their business has been relatively slow and they have had difficulty in passing through this year’s increases,” says RTI’s Burns. One leading PE supplier says domestic demand in October was more robust than in September.

Still, Burns and other industry sources expect some price relief over the next two months. As a sign that things may be changing, spot PE prices dropped for the first time in August and remained flat in September. Also, some softening of monomer prices is possible as plant operating rates return to more normal levels after a series of planned and unplanned production outages.

 

PP prices rising

Polypropylene prices were expected to move up last month as suppliers seemed set to implement their Oct. 1 hikes of 3¢ to 4¢/lb. Meanwhile, LME’s futures contract for g-p injection-grade homopolymer for November sold at 59.3¢/lb, up from October’s 57.4¢.

Contributing factors: Driving this increase are higher monomer costs. Although record-high propylene monomer prices appeared to peak in August, the subsequent price relief was short-lived. One leading PP supplier attributed high monomer prices to planned and unplanned production outages, higher oil prices, and shifts to the use of lighter feedstocks, which reduces propylene supply.

September monomer contract prices moved up 2.5¢ to 53.75¢/lb. With the monomer said to be very tight, October propylene contracts were most likely to rise another 3¢, according to Scott Newell, RTI’s director of client services for PP. At the same time, Newell says resin exports are starting to slow, inventories are creeping up, and spot PP prices have dropped.

 

Engineering resins go higher

On Nov. 1, DuPont hiked prices of nylons, PET, PBT, PCT, and LCP by 12¢/lb, acetal by 10¢ and Hytrel TPE by 15¢. Competitors are considering pricing moves, too.

DuPont also raised tabs on ethylene copolymers—6¢ for EVAs and 8¢ on all others Nov. 1. 

 

Market Prices Effective Mid-Oct A

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    1155 - 1680      70.7 - 102.8       FEP    971 - 1470      74.8 - 113.2       PFA    1550 - 2520      120 - 195       PTFE    450 - 900      34.8 - 69.7       PVDF    660 - 1000      49.9 - 75.6       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    145 - 150      6.8 - 7.0       HI-IMP    160 - 165      8.4 - 8.6       30% GLASS, FR    190 - 210      11.2 - 12.5       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    137 - 147      NAd       ISOPHTHALIC    165 - 180      NAd       BIS-A    210 - 220      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    73 - 75      2.4 - 2.5       INJECTION    75 - 77      2.5       LID RESIN    77 - 79      2.5 - 2.6       LINER    72 - 74      2.4 - 2.5       CLARITY    71 - 73      2.4       EXTRU COATG    76 - 78      2.5 - 2.6       BLOW MOLD    78 - 80      2.6       LLDPE, BUTENE BASED           G-P MOLDING    70 - 72      2.4       LME 30-DAYj    57.3      2.0       FILM    72 - 74      2.4 - 2.5       ROTOMOLD    72 - 74      2.4 - 2.5       LLDPE, HAO-BASED           G-P MOLDING    73 - 75      2.4 - 2.5       LID RESIN    83 - 85      2.7 - 2.8       LINER FILM    76 - 78      2.5 - 2.6       HDPE           G-P INJ MOLD    70 - 72      2.4 - 2.5       FILM    79 - 81      2.7 - 2.8       BLOW MOLD    80 - 82      2.7 - 2.8       HMW-HDPE           BLOW MOLDING    77 - 79      2.6 - 2.7       FILM    78 - 80      2.7       PIPE    85 - 87      2.8       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    76 - 76      2.4 - 2.5       LME 30-DAYj    59.3      2.0       EXTRUSION FIBER    73 - 75      2.4       PROFILES    77 - 79      2.5 - 2.6       RANDOM COPOL               BLOW MOLDING    78 - 80      2.5 - 2.6       FILM    78 - 80      2.5 - 2.6       INJECTION    77 - 79      2.5 - 2.6       IMPACT COPOL               MED IMP    88 - 90      2.8 - 2.9       HI IMP    90 - 92      2.9 - 3.0       POLYSTYRENE (RAILCAR)           G-P CRYSTAL    83 - 89      3.1 - 3.3       HI HEAT    86 - 92      3.2 - 3.4       HIPS    84 - 89      3.1 - 3.3       SUPER HI IMP    94 - 98      3.5 - 3.7       FR    99 - 107      3.7 - 4.0       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    54 - 56      NAd       PIPE    53      NAd       FILM    59 - 62      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

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..