Most commodity resin prices —except for PP—took a breather in August, though some hikes were pending for September. But some industry observers think polyolefin prices could be at or near a peak.

Suppliers push PE hikes

Polyethylene prices held even last month, despite suppliers’ efforts to push through a 4¢/lb hike. Some producers delayed the hike to September, and Nova and Equistar issued a new 5¢ increase for Sept. 15. The London Metal Exchange (LME) North American short-term futures contract for September in butene LLDPE for blown film sold at 58.1¢/lb, up from August’s 55.3¢.

Contributing factors: “Keep an eye on ethylene monomer” is the advice of Cindy Bryan, director of market research at resin-purchasing consultant Resin Technology Inc. (RTI), Fort Worth, Texas. July monomer contract prices rose 2.5¢/lb to a high of 48.5¢. Increases of 1¢ to 3¢ were on the table for August. Says Mike Burns, RTI’s global business director for PE, “We see ethylene and polyethylene resin prices approaching a market peak. Right now, I don’t think that we’ll see ethylene contract prices or PE resin prices moving up much more. But this could change if there were an upsurge in exports or any production disruptions.”

While resin exports have been strong, domestic demand is hard to gauge. By August, there appeared to be a slight improvement in areas such as film, but this was attributed largely to prebuying in anticipation of a price hike this month.

PP prices up

Polypropylene prices moved up 3¢/lb in July and August as suppliers aimed to implement 4¢/lb increases. Basell issued a new 3¢ increase for Sept. 1. Meanwhile, LME’s September North American futures contract for g-p injection-grade homopolymer sold at 57¢/lb, down from 58.74¢ for August.

Contributing factors: Domestic demand grew a little less than 1% through June. RTI managing partner Scott Newell says industry statistics now include Mexico—otherwise they might show flat or negative growth for the first half. However, exports have kept suppliers very busy. Despite a drop in exports to China, buyers in Latin America, Europe, and Africa have taken up the slack.

Propylene monomer contract prices hit a record high in August due to supply problems. Monomer rose 1¢ in July and 1.75¢/lb in August. Says RTI’s Newell, “We think August may be the peak for prices of monomer and PP. We saw monomer spot prices drop lower than contract prices, which is a strong sign, and there is evidence of monomer inventories increasing.” He attributes that to resolution of earlier production problems and to a drop in gasoline prices, which makes more propylene available for PP.

PET prices holding

PET prices have held firm since an increase of 2¢/lb in May, despite a failed attempt to raise prices another 4¢/lb. Looming overcapacity prevented PET suppliers from raising prices during the summer. “Feedstock prices have gone up more than PET resin prices over several months,” complained one major producer. Despite new capacity coming on stream, domestic demand continues to grow at around 6% to 7%/yr, consuming an additional 500 million lb per year. Also, export volumes, particularly to South America, have been robust. Resin plant utilization rates are still said to be in the high-80% to low-90% range.

But more new capacity has been announced by two suppliers. M&G will build a new PET plant at a still undisclosed U.S. location. Two-thirds of the planned 1.8-billion-lb capacity will come on stream in the first half of 2009. M&G also plans to debottleneck PET capacity at plants in West Virginia and Mexico, which is expected to add an additional 440 million lb of capacity by 2008. And as reported in May, Indonesia’s Indorama Polymers plans to build a second U.S. PET plant for its StarPet subsidiary. The 650-million-lb plant is scheduled for start-up in late 2008.

PVC hike stalls

Georgia Gulf and OxyChem announced 3¢/lb increases on PVC resins for Sept. 1, but Shintech reportedly told customers it won’t follow suit, so prices aren’t expected to move this month.

PS prices moderate

PS prices slipped 2¢ to 3¢/lb since June. Demand was still relatively good in mid-August, but feedstock prices were softening. Contract benzene for August was $3.59/gal. Spot prices dropped 20¢ to 30¢, so contract benzene in September is expected to be about 20¢ lower. 

RESIN GRADEb ¢/LB ¢/CU INc    ABS           MED IMPACT    84 - 90      3.1 - 3.4       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    100 - 130      3.9 - 5.1       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    46 - 52      1.5 - 1.7       FILM EXTRU    42 - 49      1.4 - 1.6       EVOH  315    13.4       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    147 - 152      NAd       ISOPHTHALIC    175 - 185      NAd       BIS-A    220 - 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    85 - 87      2.8       INJECTION    87 - 89      2.8 - 2.9       LID RESIN    89 - 91      2.9       LINER    84 - 86      2.7 - 2.8       CLARITY    83 - 85      2.7       EXTRU COATG    88 - 90      2.9       BLOW MOLD    90 - 92      2.9 - 3.0       LLDPE, BUTENE BASED           G-P MOLDING    72 - 74      2.4 - 2.5       LME 30-DAYj    74 - 76      2.5 - 2.6       FILM    58.1      2.1       ROTOMOLD    74 - 76      2.5 - 2.6       LLDPE, HAO-BASED           G-P MOLDING    77 - 79      2.6 - 2.7       LID RESIN    88 - 90      2.9 - 3.0       LINER FILM    81 - 83      2.7       HDPE           G-P INJ MOLD    74 - 76      2.5 - 2.6       FILM    83 - 85      2.8       BLOW MOLD    84 - 86      2.8       HMW-HDPE           BLOW MOLDING    81 - 83      2.7 - 2.8       FILM    82 - 84      2.7 - 2.8       PIPE    89 - 91      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    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    84 - 86      2.6 - 2.7       LME 30-DAYj    57     1.9      EXTRUSION FIBER    83 - 85      2.6 - 2.7       PROFILES    87 - 89      2.8 - 2.9       RANDOM COPOL               BLOW MOLDING    88 - 90      2.8 - 2.9       FILM    88 - 90      2.8 - 2.9       INJECTION    87 - 89      2.8 - 2.9       IMPACT COPOL               MED IMP    98      3.2 - 3.3       HI IMP    100 - 102     3.3       POLYSTYRENE (RAILCAR)           G-P CRYSTAL    87 - 93      3.3 - 3.5       HI HEAT    90 - 96      3.4 - 3.6       HIPS    88 - 93      3.3 - 3.5       SUPER HI IMP    98 - 102      3.7 - 3.8       FR    103 - 111      3.9 - 4.2       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)  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    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    228 - 240      NAd       HEAT & COR RES    253      NAd