Your Business Pricing Update - October 2009

Moderating feedstock costs, slack domestic demand, and slumping exports are putting the brakes on price hikes for most commodity resins. Polypropylene may be the exception.

 

PE PRICES FLAT

Polyethylene prices held steady through August and were expected to remain so through September. Announced 4¢/lb increases for September were unlikely to be implemented. Still, a new 5¢ hike was posted for Oct. 1. The London Metal Exchange (LME) North American short-term futures contract in blown-film butene LLDPE for October was 47.4¢/lb, up from September’s 45.5¢

Contributing factors: PE prices have been driven by two factors: higher feedstock costs due to several planned and unplanned outages at refineries and steam crackers, and exports—particularly to China. “This activity remained strong from June through August, and then stopped totally in September,” says Mike Burns, business director for PE at resin purchasing consultant Resin Technology Inc. (RTI), Fort Worth, Texas.

The scenario now appears quite different. For one thing, the feedstock issue is resolving itself as refineries and crackers have restarted. Ethylene spot prices have stabilized around 28¢ to 29¢/lb. And exports to China are unlikely to revive anytime soon, as that market now experiences higher inventories and softer demand.

Unless there is an uptick in demand, PE prices will trend downward. But don’t expect an immediate drop, because North American PE makers’ inventories are at a historical low—under 30 days, estimates RTI’s Burns.

 

PP PRICES TO MOVE UP

Polypropylene prices rose about 4¢/lb by the end of August. PP makers also issued price hikes of 12¢ to 15¢/lb for Sept. 1. At least some of that is likely to be implemented. The LME short-term futures contract on g-p injection-grade homopolymer for October rose to 49.6¢ from September’s 46.5¢/lb.

Contributing factors: PP prices are entirely feedstock driven. Propylene monomer has been extremely tight as a result of refinery and steam-cracker outages. Monomer contract prices rose 4¢/lb in August and a whopping 12¢ in September to a level of 57¢/lb, according to senior editor Mark Quinner of Houston-based PetroChem Wire. Despite PP demand being off at least 13% this year, suppliers’ margins are very thin—2¢/lb vs. 10¢ for PE.

 

PVC TABS PEAKING?

Two cents of the announced 3¢/lb hike for Aug. 1 went through, and suppliers were trying for the last penny in September. Shintech, OxyChem, and Georgia Gulf all posted a further 2¢ increase for Sept. 1, while Westlake asked for 3¢. But Formosa isn’t supporting the increase, so it isn’t considered viable.

Contributing factors: Pipe demand, already poor, weakened further in September. But demand for windows and siding is up.

 

PS HIKES EVAPORATE

Dramatic PS increases announced for Aug. 1 and 15, totaling 10¢ to 11¢/lb, fizzled after a 25% drop in benzene prices. Contract benzene for September settled at $2.79/gal, down from $3.65 in August. That represents an 8¢ decrease in the cost of making PS. Styrene monomer was expected to drop 6¢ to 8¢/lb in September. So far, this has not affected prime resin prices, but wide-spec PS prices gave up some of the earlier July increase.

Contributing factors: Exports of styrene monomer to Europe have dried up. But there’s still upward pressure on HIPS from rubber costs. Butadiene prices rose about 5¢/lb in September, but all producers are now operating again and are off allocation, so butadiene prices are expected to level out.

 

PET PRICES UP FOR NOW

Bottle-grade PET prices moved up 3¢/lb in August, but announced Sept. 1 hikes of 3¢ to 4¢ appeared dead on arrival.

Contributing factors: Expected feedstock cost increases did not materialize. Prices of paraxylene held even in September, and ethylene glycol rose only 1¢/lb, according to Mike Dewsbury, RTI’s business director for PET. Moreover, lower prices are expected for these feedstocks as new global capacity has come on stream, which should bring down PET prices through the third quarter, according to Dewsbury. Significant impact is also anticipated from 800 to 900 million lb of new PET capacity coming this year from Indoroma Polymers at its AlphaPet venture in Decatur, Ala. 

 

 

Market Prices Effective Mid-September A
RESIN GRADEb	¢/LB	¢/CU INc

ABS           MED IMPACT    95 - 115      3.6 - 4.4       HI IMPACT    100 - 135      3.7 - 5.1       X-HI IMPACT    15 - 155      4.3 - 5.8       HI HEAT    95 - 130      3.6 - 5.0       PIPE    90 - 100      3.3 - 3.7       SHEET    95 - 110      3.8 - 4.4       TRANSPARENT    139 - 210      5.4 - 8.2       FITTINGS    99 - 120      3.7 - 8.0       PLATING    170      6.4       FLAME RET    125 - 145      5.4 - 6.2       STRUCT FM    97 - 107      4.3 - 4.7       10% GLASS    139 - 150      5.3 - 5.7       30% GLASS    134 - 146      5.0 - 5.5       ABS/PC ALLOY    159 - 190      6.0 - 7.2       ABS/PVC ALLOY    144 - 149      5.4 - 5.6       ABS/NYLON ALLOY    204 - 360      7.7 - 13.6       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    750 - 1200      48 - 76.9       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    134 - 169      5.5 - 6.9       MIN FILLED    126 - 154      6.2 - 8.2       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    650 - 750      24.3 - 28       30% GLASS    NAd - NAd      NAd - NAd       40% GLASS    NAd - NAd      NAd - NAd       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    163 - 178      7.0 - 7.7       20% GLASS    169 - 186      8.2 - 9.0       30% GLASS    170 - 212      8.8 - 10.3       EXTRUSION    138 - 176      6.0 - 7.6       BLOW MOLD    143 - 181      6.2 - 7.8       STRUCT FOAM    142 - 177      6.2 - 7.7       20% GLASS    224 - 248      9.8 - 10.8       FR    158 - 193      6.9 - 8.4       CD    129 - 191      5.6 - 8.3       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)    73 - 76      3.7 - 3.8       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       POLYESTER THERMOSET           G-P ORTHO    155 - 166      NAd       ISOPHTHALIC    179 - 200      NAd       BIS-A    214 - 239      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    78 - 80      2.6       INJECTION    80 - 82      2.6 - 2.7       LID RESIN    81 - 83      2.7       LINER    76 - 78      2.5 - 2.6       CLARITY    74 - 76      2.5       EXTRU COATG    81 - 83      2.7       BLOW MOLD    83 - 85      2.7 - 2.8       LLDPE, BUTENE BASED           G-P MOLDING    68 - 70      2.4       LME 30-DAYj    47.4      1.8       FILM    70 - 72      2.4       ROTOMOLD    70 - 72      2.4       LLDPE, HAO-BASED           G-P MOLDING    72 - 74      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    69 - 71      2.4       FILM    78 - 80      2.6 - 2.7       BLOW MOLD    72 - 74      2.4 - 2.5       HMW-HDPE           BLOW MOLDING    76 - 78      2.6       FILM    77 - 79      2.6       PIPE    88 - 90      2.8 - 2.9       UHMW-PE  1.22 - 1.52    4.1 - 5.1       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    81 - 83      2.6       LME 30-DAYj    49.6      1.6       EXTRUSION FIBER    79 - 81      2.6 - 2.6       PROFILES    85 - 82      2.7       RANDOM COPOL               BLOW MOLDING    85 - 87      2.7       FILM    86 - 88      2.7 - 2.8       INJECTION    88 - 91      2.8       IMPACT COPOL               MED IMP    96 - 98      3.1 - 3.2       HI IMP    98 - 100      3.2       POLYSTYRENE (RAILCAR)           G-P CRYSTAL    61 - 67     2.3 - 2.5      HI HEAT    64 - 69     2.4 - 2.6      HIPS    70 - 76     2.6 - 2.8      SUPER HI IMP    77 - 84     2.9 - 3.1      FR    80 - 85     3.0 - 3.2      STRUCT FM (FR)    66 - 68      2.5       EPS           UNMODIFIED    89 - 92            MODIFIED    90 - 94      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    50 - 51      NAd       PIPE    47      NAd       FILM    55      NAd       COPOLYMER FLOORING    71 - 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    225 - 249      NAd       HEAT & COR RES    250 - 262      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..