Another Wave of Price Increases.

* Resin producers are keeping a steady drumbeat of price hikes in PP, PE, PET, and unsaturated polyesters. This month, engineering resins joined the upward march. The only sign of restraint was a move by the biggest PE producer to delay an increase for that resin. "Too much too soon" is the reasoning.

PP tabs move up

Polypropylene prices went up by 2[cent]/lb across the board in September. This was the third increase this year, boosting prices a total of 5-7[cent]/lb. Meanwhile, another 2[cent]/lb increase was slated to take effect Oct. 15.

Contributing factors: Strong domestic demand, an upsurge in exports, and higher propylene monomer prices helped push through the September increase. The new price hike appears to be linked to further price pressure from the monomer. Propylene contract prices went up 2[cent]/lb in September, for a total increase of 5.5[cent] since May. At press time, another 2[cent] hike was pending for October.

PE hike pushed back

A 5[cent]/lb across-the-board price hike on polyethylene resins, slated by suppliers for either Sept. 1 or Sept. 15, was pushed back to October or even later. This would be the fifth price increase this year. Successful implementation of the previous hikes have boosted LL/LDPE tabs by an average of 18[cent]/lb and HDPE by 14-16[cent]/lb.

Contributing factors: The move to delay the price increase appears to have been led by Equistar Chemicals. A company spokesman expressed concern about giving customers some time to pass through their higher costs from previous hikes. The spokesman sounded confident that the increase would be implemented eventually, "but it will take time." Other suppliers had previously questioned whether another hike would be too much too soon, but those doubts evidently evaporated when ethylene monomer prices rose again. The fate of the increase remained unclear at press time in mid-October.

PET increase brewing

An increase of 3[cent]/lb on PET bottle resin was issued by all key suppliers for Oct. 1. Initiated by Eastman Chemical, the move follows two consecutive 5[cent] increases earlier this year, which were successfully implemented between June and August.

Contributing factors: Rising feedstock costs are the driving force behind this latest hike. A price increase of 3[cent]/lb on DMT/PTA prices is in the works for the fourth quarter. It remains to be seen whether the latest PET hike will succeed, as PET prices historically tend to soften late in the year.

Polycarbonate up a dime

Ten-cent increases for polycarbonate and 8[cents]/lb increases for PC blends were announced by GE Plastics and Dow. GE's increases, which also include a 7[cents] hike for modified-PPO resins, take effect Oct. 25. Dow's will become effective Nov. 10. Bayer confirmed that it will raise PC prices but would not say how much or when.

Unsaturated polyesters

Thermoset liquid polyesters from Reichhold, AOC, and Ashland will cost 3[cents] more across the board. AOC and Ashland's new prices take effect Oct. 18, Reichhold's Nov. 1.

Contributing factors: All companies point to rising costs of raw materials such as styrene, various glycols, phthalic anhydride, and cobalt promoters. Ashland also cites the need to reinvest in this growing market.