2005 outlook: tight supplies, high prices.* The same factors responsible for narrowly balanced supply/demand and escalating prices in 2004 will be at work again in 2005. Market demand appears to be on the upswing Upswing An upward turn in a security's price after a period of falling prices. ; there is almost no substantial new capacity in sight; and petrochemical petrochemical, any one of a large group of chemicals derived from a component of petroleum or natural gas. The cracking processes for manufacturing gasoline produce vast quantities of gaseous hydrocarbons. feedstock feed·stock n. Raw material required for an industrial process. Noun 1. feedstock - the raw material that is required for some industrial process raw material, staple - material suitable for manufacture or use or finishing costs are unlikely to come down soon. At best, processors can hope that future price increases may be less steep. PE prices up Polyethylene polyethylene (pŏl'ēĕth`əlēn), widely used plastic. It is a polymer of ethylene, CH2=CH2, having the formula (-CH2-CH2-)n resin resin, any of a class of amorphous solids or semisolids. Resins are found in nature and are chiefly of vegetable origin. They are typically light yellow to dark brown in color; tasteless; odorless or faintly aromatic; translucent or transparent; brittle, fracturing prices had moved up 5 cents/lb by early November November: see month. , and suppliers were implementing an additional 6 cents increase. A new 5 cents /lb hike, nominally for Dec. 1, will come due early in 2005. Through November, PE tabs rose about 14 cents/lb in 2004. Another 6 cents increase this month will bring the year's total to 20 cents/lb. Contributing factors: Suppliers say supply/demand tighthess is the primary reason for rising prices. They also cite continued pressure from feedstocks. Ethylene ethylene (ĕth`əlēn') or ethene (ĕth`ēn), H2C=CH2, a gaseous unsaturated hydrocarbon. It is the simplest alkene. monomer monomer (mŏn`əmər): see polymer. monomer Molecule of any of a class of mostly organic compounds that can react with other molecules of the same or other compounds to form very large molecules (polymers). is very tight, and an increase on the table for November would push it to an unprecedented 40 cents/lb or more. Suppliers have moved away from price protection this year, and they indicate that 2005 will see the end of such practices. "We will always give 30-day notice, but that will be it," says one. Domestic demand for PE in 2004 is expected to be up 8%. The export market, especially China, will also remain strong. Resin capacity utilization rates Capacity utilization rate The percentage of the economy's total plant and equipment that is currently in production. Usually, a decrease in this percentage signals an economic slowdown, while an increase signals economic expansion. are in the high 90% range. Supplies are very tight and supplier inventories are down. Says one producer, "We are working hard to prevent pre-buying. Although we are not on allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as , control programs are in place." In 2005, PE supply will remain tight. While there is potential for plant debottlenecking, the next major North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. expansion will come from a new joint venture of Mexico's Pemex and Nova Chemicals NOVA Chemicals is a leading chemical company jointly headquartered in Calgary, Alberta, and the Pittsburgh, Pennsylvania, suburb of Moon Township. It was founded in 1954. The corporation's chemical assets are divided into two divisions: Olefins/Polyolefins and Styrenics. . They propose to build three PE plants of about 900 million/lb/yr each, though not before 2009 or 2010. PP prices going up again Polypropylene polypropylene (pŏl'ēprō`pəlēn), plastic noted for its light weight, being less dense than water; it is a polymer of propylene. It resists moisture, oils, and solvents. prices climbed 6 cents/lb by early November, bringing PP tabs up 18 cents to 19 cents so far this year. A new increase of 4 cents to 5 cents was announced for Dec. 1 by all major suppliers. Dow (Direct OverWrite) See magneto-optic disk. Polyolefins polyolefins (pŏl'ēōl`əfən), group of plastics that are polymers of various alkenes, or olefins. The most important are polyethylene and polypropylene. issued a 4 cents/lb increase for Dec. 1 and then posted an additional 5 cents hike for Dec. 5. PP's upward climb is not expected to halt in 2005, and suppliers are dropping price protection. Contributing factors: Tight supply, continued strong demand, and record-high feedstock costs are the main factors behind higher prices. Domestic demand through October October: see month. was up 7.5% and suppliers are projecting similar growth for next year. Export demand, up a whopping 23% this year, should also remain strong. Supplier inventories are said to be at historic lows. Major producers like Basell and ExxonMobil Exxon Mobil Corporation or ExxonMobil (NYSE: XOM), a multi-national American corporation and a direct descendant of John D. Rockefeller's Standard Oil company[2] say plant debottlenecking could support another year of good growth, and there is some idle capacity that could be restarted, but no major new capacity is planned. Nameplate resin plant utilization has been over 95% for several months and will stay there in 2005. One supplier notes that any unplanned outages could significantly upset supply. Propylene propylene /pro·pyl·ene/ (pro´pi-len) a gaseous hydrocarbon, CH3CHdbondCH2. propylene glycol a colorless viscous liquid used as a humectant and solvent in pharmaceutical preparations. monomer prices hit a high of 36.5 cents/lb in October. An expected increase of 4 cents on November contracts would lift tabs above 40 cents/lb. Propylene supply is projected to remain tight, so prices aren't aren't Contraction of are not. See Usage Note at ain't. aren't are not aren't be likely to drop. More PVC PVC: see polyvinyl chloride. PVC in full polyvinyl chloride Synthetic resin, an organic polymer made by treating vinyl chloride monomers with a peroxide. hikes Pipe resin hit an unprecedented 42 cents to 45 cents/lb in mid-November n. 1. the middle part of November. Noun 1. mid-November - the middle part of November period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue . OxyChem Oxychem (more formally called Occidental Chemical Corporation) is the chemicals division of the Occidental Petroleum Corporation. It is based in Dallas, Texas and is a major producer of commodity chemicals such as potassium hydroxide and sodium hydroxide, as well as plastics announced an increase of 2 cents/lb for all PVC resins resins, n.pl complex, insoluble, sticky substances secreted by plants. Used as astringents, antimicrobials, and antiinflammatories, and are burned as incense. Can cause oral ulcers and epidermal irritations. as of Dec. 1, then raised the hike to 5 cents/lb, based on an expected surge in ethylene and natural gas prices. Formosa Formosa, province, Argentina Formosa, province (1991 pop. 404,367), 27,825 sq mi (72,067 sq km), N Argentina. The city of Formosa is the capital. Formosa, former name for Taiwan Formosa: see Taiwan. matched the 2 cents increase, and Shintech said it would back 5 cents. Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. Gulf posted a 3 cents hike for Dec. 1 plus 2 cents more for Jan. 1. PVC compounders raised prices 3 cents/lb Oct. 1 and announced a 5 cents increase for Jan. 1. Contributing factors: Resin makers expect to end 2004 with around 6% market growth, but they see next year returning to typical 3% to 3.5% gains and perhaps only 1% to 1.5% in the first half. The only expansion on the horizon is the restart To resume computer operation after a planned or unplanned termination. See boot, warm boot and checkpoint/restart. ofWestlake's 300-million-lb train in Geismar Geismar is a Thuringian (Germany) municipality in the district of Eichsfeld.
• , La. Monomer is expected to remain extremely tight and may limit resin production. PS hike delayed A year of strong demand growth left polystyrene polystyrene (pŏl'ēstī`rēn), widely used plastic; it is a polymer of styrene. Polystyrene is a colorless, transparent thermoplastic that softens slightly above 100°C; (212°F;) and becomes a viscous liquid at around 185°C; producers with losses in the third quarter before a 10 cents/lb hike restored some profit margin. Price increases this year totaled 34 cents last month. Resin producers delayed a further 8 cents increase announced for Sept. 15. Nova and Dow moved 4 cents of that hike to Dec. 1 and 4 cents to Jan. 1. Chevron and BASF BASF Bar Association of San Francisco (since 1872; San Francisco, California) BASF Badische Anilin und Soda Fabrik (German chemical products company) BASF Builders Association of South Florida slated 4 cents hikes for Nov. 15 and Dec. 1, respectively, and left the other 4 cents on TVA TVA: see Tennessee Valley Authority. . Contributing factors: PS demand grew 4.8% through September and was unseasonably strong in November. EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. demand roared to a 14.7% increase through September, so EPS and PS combined could end the year with more than 6% growth. Next year, producers see gains of 1% to 3%. Feedstocks are the other critical factor. Contract benzene benzene (bĕn`zēn, bĕnzēn`), colorless, flammable, toxic liquid with a pleasant aromatic odor. It boils at 80.1°C; and solidifies at 5.5°C;. Benzene is a hydrocarbon, with formula C6H6. prices were expected to hit $3.75 for November. Ethylene is also at an all-time high. Several producers say they will no longer offer PS contracts with price protection, even to large buyers, given the volatility of feedstocks. PET prices up PET resin tabs rose 8 cents/lb by mid-November, bringing total increases to about 19 cents/lb for the year. A new 9 cents hike was announced for Dec. 1. Any increases in 2005 should be more moderate. "PET resin prices could rise a few cents next year, but there should be no need for these month-to-month month-to-month adj. referring to a tenancy in which the tenant pays monthly rent and has no lease, and the tenancy can be terminated by the landlord at any time on thirty-days notice. (See: tenancy, landlord and tenant) price increases." says one source. Contributing factors: Most of this year's PET price inflation was feedstock driven, but by the fourth quarter, a tighter supply/demand balance became the main price mover mover /mov·er/ (moo´ver) that which produces motion. prime mover a muscle that acts directly to bring about a desired movement. . Domestic PET demand for 2004 should be up 7% or 8%. Similar growth is possible for 2005, but producers anticipate much tighter supplies. No major new capacity is imminent--just rumored debottlenecking. Engineering resins up A host of prices were bumped upward on or near Dec. 1. * Nylon nylon, synthetic thermoplastic material characterized by strength, elasticity, resistance to abrasion and chemicals, low moisture absorbency, and capacity to be permanently set by heat. After 10 years of research E. I. 6 and 66: Up 11 cents/lb from DuPont, 9 cents from Rhodia. * Nylon 12 and 612: Up 9% from Degussa. * PBT PBT Provider Backbone Transport (networking technology adding determinism to ethernet) PBT Polybutylene Terephthalate PBT Profit Before Tax PBT Paper Based Test (education) : Up 10 cents from DuPont and Ticona. * PET: Up 4% from DuPont and 10 cents from Ticona. * Aeetal: Up 9 cents from DuPont, 10 cents from Ticona and BASF. * Copolyester TPE TPE Thermoplastic Elastomer TPE Terminal de Paiement Electronique (French) TPE Total Power Exchange TPE Twisted Pair Ethernet TPE Tampines Expressway (Singapore) TPE Therapeutic Plasma Exchange : Up 10 cents from DuPont and Ticona. * LCP (Link Control Protocol) See PPP. LCP - Link Control Protocol : Up 4% from DuPont and 20 cents from Ticona. * PPs: Ticona hiked unfilled resin 41 cents, filled 25 cents to 35 cents. * Others: DuPont raised Zytel HTN HTN Hypertension HTN High Blood Pressure HTN Hierarchical Task Network HTN Hughes Television Network HTN Hospitality Training Network (Sydney, Australia) HTN Histotechnology (program of study) nylon and Thermx high-heat polyester polyester, synthetic fiber, produced by the polymerization of the product formed when an alcohol and organic acid react. The outstanding characteristic of polyesters is their ability to resist wrinkling and to spring back into shape when creased. 4%. Ticona boosted Celstran long-fiber compounds 10cents/lb. Thermosets thermosets, materials that can not be softened on heating. In thermosetting polymers, the polymer chains are joined (or cross-linked) by intermolecular bonding. Thermosets are usually supplied as partially polymerized or as monomer-polymer mixtures. up, too December 1 hikes included a 10 cents/lb boost to base prices (excluding benzene surcharges) for MDI (1) (Multiple Document Interface) A Windows function that allows an application to display and lets the user work with more than one document at the same time. and polyols polyols (pol´ēôlz), n.pl substances made up of two or more alcohols. See also sugar alcohols. from BASF and Dow. There were also 10 cents to 15 cents increases on epoxies This article is about the band named the Epoxies. For the adhesive, see Epoxy. The Epoxies are an American band from Portland, Oregon formed in 2000. Heavily influenced by punk rock and New Wave the band has described themselves as robot garage rock. from Huntsman. (Dow raised them 8 cents to 12 cents on Nov. 15.)
Market Prices Effective Mid-November (a)
RESIN GRADE (b) cents/LB cents/CU IN (c)
ABS
MED IMPACT 62-82 2.4-3.1
HI IMPACT 72-85 2.7-3.2
X-HI IMPACT 82-105 3.1-3.9
HI HEAT 85-95 3.2-3.6
PIPE 58-62 2.2-2.3
SHEET 75-90 3.0-3.7
TRANSPARENT 125-165 4.9-6.4
FITTINGS 65-78 2.4-2.9
PLATING 95-105 3.5-3.9
FLAME RET 105-135 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 135-165 5.6-6.8
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 133-137 6.8-7.0
25% GLASS 160-215 9.2-12.3
ACRYLIC
G-P
IMPACT 111-146 0-66.3
156-216 6.7-9.3
ACRYLONI-
TRILE COPOL
EXTRUSION 78-110 3.3-4.7
INJECTION 130-191 5.4-7.9
ALKYD 65-74 4.9-5.5
CELLULOSICS
ACETATE 187 8.60
CAB 189 8.20
CAP 189 8.20
DAP (G-P) 251-497 16.3-34.7
EPOXY
G-P RESIN 116-126 NA (d)
COMPOUNDS
C/B/T (e) 123-166 9.4-12.9
R/C/D (f) 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
POLYMER
CTFE 4500 346.6
ECTFE 1400-1600 108.3-123.8
ETFE 1100-1600 73.6-107.1
FEP 925-1400 71.3-107.9
PFA 1700-2400 131.6-185.8
PTFE 450-900 34.8-69.7
PVDF 650-800 41.4-50.9
IONOMER
PACKAGING 127-166 4.3-6.0
INDUSTRIAL 150-244 5.0-8.3
LIOUID-
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 6 124-144 5.0-5.9
MIN FILLED 119-132 5.9-6.6
30% GLASS 135-160 6.6-7.8
TYPE 66 140-155 7.4-8.2
MIN FILLED 140-148 7.4-7.8
30% GLASS 130-180 6.3-8.8
TYPE 69 250-276 9.7-10.7
TYPE 6/10 286-313 12.4-13.6
TYPE 612 400 15.30
30% GLASS 309-311 14.70
40% GLASS 309 14.70
TYPE 46 295 12.60
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-
IMIDE (g)
UNFILLED 2310-3045 117.8-155.3
30% GLASS 2250-2985 130.4-173.0
30% CARBON FIB. 3260-3950 173.6-210.5
POLYARYLATE 200-280 8.8-12.3
POLYARYL-
SULFONE 440 21.80
POLYETHYLENE
G-P 94-96 3.10
FILM 88-91 2.90
PIPE
COLD WATER 116-120 3.9-4.0
HOT WATER 162-166 5.5-5.6
POLYCAR-
BONATE
INJECTION 138-165 5.9-7.0
20% GLASS 177-190 7.6-8.2
30% GLASS 178-217 7.6-9.3
EXTRUSION 127-145 5.4-6.2
BLOW MOLD 140-170 6.0-7.3
STRUCT FOAM 149-181 6.4-7.8
20% GLASS 235-255 10.1-11.0
FR 166-197 7.1-8.5
CD 82-100 3.5-4.3
POLYESTER (TP)
PBT TYPE
UNFILLED 143-150 6.9
HI-IMP 154-165 7.6
30% GLASS, FR 165-187 10.0
STRUCT FOAM 159-165 NA (d)
PET
BOTTLE (RAILCAR) 80-82 [up arrow]# 4.0-4.1 [up arrow]
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 74-82 NA (d)
ISOPHTHALIC 94-104 NA (d)
BIS-A 130-165 NA (d)
PEEK 4400 231
30% GLASS 3300 173
POLYETHER-
IMIDE 641-646 29.3-29.5
30% GLASS 526-531 24.0-24.2
POLYESTER-
KETONE (PEK) 2950 130.1
30% GLASS 2600 153
POLYETHER-
SULFONE 350-400 17.2-19.7
30% GLASS 425-525 21-25.9
POLYETHYLENE
(RAILCAR)
LDPE
G-P MOLDING
& EXTRU 82-84 [up arrow]# 2.1-2.8 [up arrow]#
INJECTION 82-84 [up arrow]# 2.7-2.8 [up arrow]#
LID RESIN 84-86 [up arrow]# 2.7-2.8 [up arrow]#
LINER 82-84 [up arrow]# 2.7-2.8 [up arrow]#
CLARITY 81-83 [up arrow]# 2.77 [up arrow]#
EXTRU COATG 83-85 [up arrow]# 2.7-2.8 [up arrow]#
BLOW MOLD 84-86 [up arrow]# 2 7-2.8 [up arrow]#
LLDPE,
BUTENE-
BASED
G-P MOLDING 69-71 [up arrow]# 2.3-2.4 [up arrow]#
FILM 71-73 [up arrow]# 2.4 [up arrow]#
ROTOMOLD 73-75 [up arrow]# 2.4-2.5 [up arrow]#
LLDPE,
HAO-BASED
G-P MOLDING 75-78 [up arrow]# 2.5-2.6 [up arrow]#
LID RESIN 81-84 [up arrow]# 2.7-2.8 [up arrow]#
LINER FILM 76-78 [up arrow]# 2.5-2.6 [up arrow]#
HDPE
G-P INJ MOLD 71-73 [up arrow]# 2.47 [up arrow]#
FILM 79-81 [up arrow]# 2.7-2.8 [up arrow]#
BLOW MOLD 73-75 [up arrow]# 2.4-2.6 [up arrow]#
HMW-HDPE
BLOW MOLDING 81-83 [up arrow]# 2.8 [up arrow]#
FILM 83-85 [up arrow]# 2.8-2.9 [up arrow]#
PIPE 87-89 [up arrow]# 3.O [up arrow]#
UHMW-PE 100-125 3.6-3.7 [up arrow]#
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 NA (d)
PPS
40% GLASS 340-385 20-23
55% GLASS/
MINERAL 275-295 16.2-17.4
65% GLASS/
MINERAL 215-260 11-14
POLY-
PROPYLENE
(RAILCAR)
G-P HOMOPOL
INJECTION 67-69 [up arrow]# 2.2 [up arrow]#
EXTRUSION
FIBER 64-66 [up arrow]# 2.1 [up arrow]#
PROFILES 68-70 [up arrow]# 2.2-2.3 [up arrow]#
RANDOM COPOL
BLOW MOLDING 72-74 [up arrow]# 2.3-2.4 [up arrow]#
FILM 70-72 [up arrow]# 2.3 [up arrow]#
INJECTION 69-71 [up arrow]# 2.2-2.3 [up arrow]#
IMPACT COPOL
MED IMP 82-84 [up arrow]# 2.7 [up arrow]#
HI IMP 85-87 [up arrow]# 2.8-2.9 [up arrow]#
POLYSTYRENE
(RAILCAR)
G-P CRYSTAL 72-81 [up arrow]# 2.7-3.0 [up arrow]#
HI-HEAT 75-84 [up arrow]# 2.8-3.1 [up arrow]#
HIPS 73-82 [up arrow]# 2.7-3.1 [up arrow]#
SUPER HI IMP 83-90 [up arrow]# 3.1-3.4 [up arrow]#
FR 91-102 3.4-3.8
STRUCT FM (FR) 95-98 NA
EPS
UNMODIFIED 80-83 NA (d)
MODIFIED 81-85 NA (d)
POLYSULFONE
10% GLASS 432-512 19.3-22.9
30% GLASS 607-612 27-27.3
POLYURE- 557-562 24.9-25
THANE (TP)
ESTER TYPE 185-255 8-11
ESTER TYPE 245-295 10.6-13
PU
ISOCYANATES
POLYMERIC MDI 105-115
80/20 TDI 110-120
PVC RESIN
(RAILCAR)
G-P HOMOPOL 44-46 [up arrow]# NA (d)
PIPE 42-45 [up arrow]# NA (d)
FILM 54-56 [up arrow]# NA (d)
COPLOYMER
FLOORING 58-60 [up arrow]# NA (d)
DESPERSION
HOMOPOLY 57-75 [up arrow]# NA (d)
COPOLYMER 72-76 [up arrow]# NA (d)
CPVC PIPE
COMPOUND 119 NA (d)
PVDC
EXTRUDABLE 162 NA (d)
SILICONES
MOLD. COMP. 581-640 38.1-39.3
SPECIALTY GR. 891-3148 NA (d)
SILICON/EXPOXY 339-343 22.5-22.8
STRYRENE-
ACRYLIC 108-112 3.7-4.0
SAN (G-P) 66-74 2.5-2.8
STRYRENE-
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
POLYSTER 200-310 8.8-13.6
STYRENIC 83-237 2.9-8.3
UREA MOLDING
COMPOUND
BALCK & BROWN 76 3.8
WHITE & IVORY 81 4.0
VINYL ESTER
CORR RES 147 NA (d)
HEAT & COR RES 161 NA (d)
KEY: Colored areas indicate pricing activity. An arrow ([up arrow])
indicates direction of price change. (a) Truckload, unless otherwise
specified. (b) Unifilled, natural color, unless otherwise specified.
(c) Based on typical or average density. (d) Not applicable. (e)
Novolac and andydride grades for coils, bushings, transformers. (f)
Novolac and anhydride grades for resistors, capacitors, diodes. (g)
In quartites of 20,000 lb. (h) 19,800-lb load.
Note: Figures in colored areas indicated with #.
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