Feedstocks drive up prices your business.

Prices of all sorts of commodity and engineering thermoplastics and thermosets are rising by leaps and bounds, reacting to equally strong increases in feedstock costs.

PE PRICES UP SHARPLY

PE prices moved up 3 cents/lb in May, after a 3 cents increase in April. A 5 cents hike slated for June was working its way into the market, and a 7 cents increase was announced for July 1. Meanwhile, the London Metal Exchange (LME) North American short-term futures contract for .July in blown film butene LLDPE was 73 cents/ lb, a big jump from June's 68.5 cents/lb.

Contributing factors: It's likely that the June 5 cents hike will be fully implemented, according to Mike Burns, global business director for PE at resin purchasing consultant Resin Technology, Inc. (RTI), Fort Worth, Texas. Continued increases in feedstock costs and low resin inventories are supporting factors. April-May contracts for ethylene monomer moved up a total of 4 cents/lb, and there were bids for at least a 5 cents increase in June.

Domestic PE demand remains lackluster, but HDPE supply is still extremely tight. According to Burns, one factor was Nova Chemicals' unexpected delay in starting tip a new plant after shuttering an older one. Export demand is down from last year but still above historical levels, owing partly to the weak dollar. APE plant explosion in China has renewed export opportunities here.

BIG PP HIKE PENDING

Polypropylene prices moved up 4 cents/lb by June 1, although suppliers had posted a 5 cents hike. New hikes were announced in May for June 1, which started out at 5 cents/lb but ended up at 8 cents/lb. The July LME North American short-term futures contract for g-p injection-grade homopolymer sold for 78.9 cents/lb, tip from June's 73.9 cents.

Contributing factors: The resin hikes are linked directly to soaring feedstock prices. Propylene monomer contracts in May moved up 4 cents to 69 cents/lb, and June contracts were up 6 cents to a historical peak of 75 cents/lb. Cindy Bryan, director of market research at RTI, predicts that PP suppliers will probably get 6 cents/ lb out of their 8 cents June hikes.

Domestic PP demand is still down and U.S. PP exports to most parts of the world have dropped significantly. Says RTI's Bryan, "Propylene monomer prices are too high, making PP exports cost-prohibitive, and there is competition with exports from Europe and the Middle East." Meanwhile, PP suppliers have curtailed production, reducing their inventories to about 36 to 38 days, vs. the usual 40-45 days.

Resin supplies are expected to tighten over the next two months, as both Formosa Plastics and LyondellBasell have suffered mechanical breakdowns and utility supply distruptions. Formosa declared force majeure on all of its PP products, which was estimated to result in a 15% reduction of its PP shipments in at least June and July. LyondellBasell did not declare force majeure, but said that severe production problems at both its Bayport, Texas, and Lake Charles, La., PP plants, resulted in its having to fill resin orders from inventory. The company has suspended spot and other non-contract sales.

PET RISING

PET prices were up as much as 4 cents/lb in May as suppliers sought to implement a 4 cents increase after pushing through the April 5 cents hike. Meanwhile, a 3 cents/lb increase for June 1 and 5 cents for July 1 were also in the works.

Contributing factors: The increases are driven by rising prices of feedstocks. While ethylene glycol prices leveled out after having risen significantly in the first quarter, prices of the more critical paraxylene component keep going up. From December through May, paraxylene prices rose 10 cents/lb. Industry sources project further price increases because paraxylene follows crude oil prices, and its supply is tight. Meanwhile, PET resin supply is loose due to lackluster demand and new capacity that came on stream in the last year.

PVC PRICES UNSETTLED

In mid June, the 4 cents increase supported by all resin producers for May 1 still hadn't settled. Buyers and sellers alike were awaiting the CDI price index to come out later in June, since Many PVC contract prices are pegged to it. Resin producers say the 4 cents is solid for May shipments. Processors, however, want 2 cents in May and 2 cents in June. Georgia Gulf, Formosa, and OxyChem announced a 4 cents hike for July 1. Shintech is expected to go along.

Contributing factors: Feedstocks are soaring. Ethylene monomer, which hadn't settled for May at press time, may rise over 5 cents/lb.

PS INCREASES SOUGHT

PS market prices were expected to rise 4 cents for GP and high-heat grades and 6 cents for HIPS as of June 1. On top of that, Ineos and Total announced a 5 cents increase on all PS grades for June 15, while America's Styrenics posted a 3 cents hike on GP and 4 cents on HIPS for July 1.

Contributing factors: Demand for PS is still weak. But PS is made from benzene and ethylene. Benzene settled at $4.31 for May, up from $3.87 in April. Ethylene prices are on the upswing, too.

LOTS MORE INCREASES

DuPont posted a 20 cents/lb increase for all standard nylon resins and even bigger hikes for specialty resins, effective July 1. This comes on top of a 12 cents increase May 1. DuPont also hiked acetals 10 cents/lb and polyesters 15 cents/1b on July 1.

Ticona announced price increases and a transportation surcharge for June 16: Acetal, PBT, PET, and copolyester TPE are up 10 cents. Celstran long-fiber products are up 7 cents, and LCPs gained 35 cents to 45 cents/lb. GUR UHMW-PE rose 20%.

Solutia hiked nylon 66 10% July 1.

BASF hiked styrenic copolymers 6 cents/lb on July 1. This includes ABS, SAN, ASA, MABS, and nylon/ABS alloys. Meanwhile, Styrolux and Styroclean SBCs were up 6 cents on June 16.

Huntsman raised epoxies 8% July 1.

AOC hiked unsaturated polyester and vinyl ester resins by 10 cents/lb on June 30 and tacked on a 4 cents/1b surcharge for products in steel drums.

MARKET PRICES EFFECTIVE MID-JUNE (a)

Resin Grade (b)            cents/lb.              cents/Cu. In. (c)

ABS
  MEDIMPACT                90-110                 3.4-4.2
  HI IMPACT                95-131                 3.6-5.0
  X-HI IMPACT              105-145                4.0-5.5
  HI HEAT                  90-125                 3.4-4.7
  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 PET                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
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                    8.6
  CAB                      189                    8.2
  CAP                      189                    8.2
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
  SEMI-
  CONDUCTOR
    NOVOLAC                193-228                13.1-15.9
    ANHYDRIDE              188-268                13.9-19.2
EVA
INJECTION                  69-71                  2.3-2.4
FILM
EXTRUSION                  67-69                  2.3
EVOH                       330                    15
FLUOROPOLYMER
  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                     693-1050               44.4-67.2
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
  TYPE46                   350                    17.6
  TYPE ll                  650-750                24.3-28
    30% GLASS              NA (d)                 NA (d)
    40% GLASS              NA (d)                 NA (d)
  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
POLYAMIDEMIW (g)
  UNFILLED                 2750                   148.5
  30% GLASS                2500                   135
  30% CARBON               3500                   185
    FIBER

KEY: Colored areas indicate pricing activity. An arrow (')
indicates direction of price change. (a) Truckload, unless
otherwise specified. (b) Unfilled, natural color, unless otherwise
specified. (c) Based on typical or average density. (d) Not
applicable. (e) Novolac and anhydride grades for coils, bushings,
transformers. (f) Novalac and anhydride grades for resistors,
capacitors, diodes. (g) In quantities of 20,000 lb. (h) 19,800-lb
load. (j) Prices include benzene surcharge. (j) LME 30-day futures
contract for lots of 54,564 lb.

Note: Colored areas indicate pricing activity indicated with #.

MARKET PRICES EFFECTIVE MID-JUNE (a)

Resin Grade (b)            cents/Lb.              cents/Cu. In. (c)

POLYARYLATE                200-280                8.8-12.3
POLYARYLSULFONE            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                171-182                7.4-7.9
    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                150-185                7.0-7.5
  STRUCT FOAM              149-181                6.4-7.8

    20% GLASS              235-255                10.1-11.0
  FR                       166-197                7.1-8.5
  CD                       135-195                5.8-8.4
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                NA (d)
PET
  BOTTLE
  (RAILCAR)                80-82                  4.0-4.1
  MOD ET
    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                154-164# [up arrow]    NA (d)
  ISOPHTHALIC              183-198# [up arrow]    NA (d)
  BIS-A                    218-238# [up arrow]    NA (d)
POLYETHER-
KETONE (PEEK)              4400                   231
  30% GLASS                3300                   173

MARKET PRICES EFFECTIVE MID-JUNE (a)

Resin Grade (b)            cents/Lb.              cents/Cu. In. (c)

POLYETHERIMIDE             641-646                29.3-29.5
  30% GLASS                526-531                24.0-24.2
POLYETHER-
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                81-83# [up arrow]      2.7# [up arrow]
  INJECTION                83-85# [up arrow]      2.7-2.8# [up arrow]
    LID RESIN              85-87# [up arrow]      2.8# [up arrow]
    LINER                  80-82# [up arrow]      2.6-2.7# [up arrow]
  CLARITY                  79-81# [up arrow]      2.6-2.7# [up arrow]
  EXTRU COATG              84-86# [up arrow]      2.7-2.8# [up arrow]
  BLOW MOLD                86-88# [up arrow]      2.8# [up arrow]
LLDPE,
BUTENE-BASED
  G-PMOLDING               78-80# [up arrow]      2.6# [up arrow]
  FILM                     83-85# [up arrow]      2.7-2.8# [up arrow]
    LME 30-DAY (j)         73# [up arrow]         2.4# [up arrow]
  ROTOMOLD                 80-82# [up arrow]      2.6-2.7# [up arrow]
LLDPE,
HAO-BASED
  G-P MOLDING              81-83# [up arrow]      2.7# [up arrow]
  LID RESIN                91-93# [up arrow]      2.9# [up arrow]
  LINER FILM               84-86# [up arrow]      2.7-2.8# [up arrow]
HDPE
  G-P INJ MOLD             78-79# [up arrow]      2.6# [up arrow]
  FILM                     87-89# [up arrow]      2.7# [up arrow]
  BLOW MOLD                88-91# [up arrow]      2.7-2.8# [up arrow]
HMW-HDPE
  BLOW
  MOLDING                  85-87# [up arrow]      2.7# [up arrow]
  FILM                     86-88# [up arrow]      2.7# [up arrow]
  PIPE                     93-95# [up arrow]      2.8# [up arrow]
UHMW-PE                    100-125                3.6-3.7
PPE/PPO-
BASED RESIN
  INJECTION                180                    6.8
  20% GLASS (h)            283                    12.3
  30% GLASS (h)            291                    13.3
  EXTRUSION (h)            242                    9.2
  STRUCT FM                231                    NA (d)
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              88-88# [up arrow]      2.7# [up arrow]
    LME 30-DAY (j)         73.9# [up arrow]       2.5# [up arrow]
  EXTRUSION
    FIBER                  84-86# [up arrow]      2.6-2.7# [up arrow]
    PROFILES               89-91# [up arrow]      2.7-2.8# [up arrow]
  RANDOM
  COPOL
    BLOW MOLDING           90-92# [up arrow]      2.8# [up arrow]
    FILM                   90-92# [up arrow]      2.8# [up arrow]
    INJECTION              89-91# [up arrow]      2.7-2.8# [up arrow]
  IMPACT COPOL
    MED IMP                100-102# [up arrow]    3.1# [up arrow]
    HI IMP                 102-104# [up arrow]    3.1# [up arrow]
POLYSTYRENE
(RAILCAR)
  G-P CRYSTAL              95-101# [up arrow]     3.6-3.8# [up arrow]
    HI HEAT                98-104# [up arrow]     3.7-3.9# [up arrow]
  HIPS                     98-103# [up arrow]     3.7-3.9# [up arrow]
    SUPER HI IMP           107-112# [up arrow]    4.0-4.2# [up arrow]
    FR                     113-119# [up arrow]    4.2-4.5# [up arrow]
    STRUCTFM
    (FR)                   105-108                NA (d)
EPS
  UNMODIFIED               85-88                  NA (d)
  MODIFIED                 86-90                  NA (d)
POLYSULFONE                650-750                29-33
  10% GLASS                799-875                36-39
  30% GLASS                699-775                31-35
POLYURE-
THANE (TP)
  ESTER TYPE               185-255                8-11
  ETHER TYPE               245-295                10.6-13
PU
ISOCYANATESI
  POLYMERIC
  MIDI                     125-145                NA (d)
  80/20 TDI                135-145                NA (d)
PVC RESIN
(RAILCAR)
  G-P HOMOPOL              61-63# [up arrow]      NA (d)
  PIPE                     60# [up arrow]         NA (d)
  FILM                     66-70# [up arrow]      NA (d)
  COPOLYMER
    FLOORING               69-74                  NA (d)
  DISPERSION
    HOMOPOLY               81-87                  NA (d)
    COPOLYMER              86-90                  NA (d)
  CPVC PIPE
    COMPOUND               119                    NA (d)
PVDC
  EXTRUDABLE               162                    NA (d)
SILICONES
  MOLD. COMP.              581-640                381-393
  SPECIALTY GR.            891-3148               NA (d)
  SILICONE/
  EPOXY                    339-343                22.5-22.8
STYRENE-ACRYLIC            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                  2.40
  POLYAMIDE                300-350                10.9-12.7
  POLYESTER                200-310                8.8-13.6
  STYRENIC                 83-237                 2.9-8.3
VINYL ESTER
  COR RES                  231-248# [up arrow]    NA (d)
  HEAT & COR
  RES                      256-261# [up arrow]    NA (d)