Olefin prices take a breather.

* Midsummer brought a sudden pause in price escalation--at least for polyolefins--after a storm of increases announced in June. Thermoset prices were still on the march, however, as were those of some other resins.

PE prices flat

After moving up 3 cents to 6 cents/lb in June, polyethylene prices remained flat last month. The 7 cents/lb increase scheduled for July 1 appears to be on hold, with some suppliers pushing it back to August and others rumored to be splitting it for partial implementation in August and September. Meanwhile, the London Metal Exchange (LME) August short-term futures contract for butene LLDPE for blown film (55.5 cents/lb) is down from July's 56.2 cents.

Contributing factors: Based on their current supply/demand assessment, suppliers anticipate that they will be able to implement their 7 cents/lb increase, even if it is done in increments. Overall demand is currently balanced, though some markets are stronger than others--particularly HDPE blow molding, profiles, and film. Suppliers' plant operating rates continue at above 90%. June ethylene monomer contract prices moved up only 1.5 cents, to 47 cents/lb, and July saw much lower spot prices for the first time in a long time.

PP prices stable

Polypropylene prices were flat or down as much as 1.5 cents/lb in July after having risen an average of 7 cents in the two previous months. Suppliers' 4 cents to 5 cents/lb price hikes announced for July 1 did not appear to be widely implemented at press time. LME's August short-term futures contract for g-p injection-grade homopolymer moved up a bit to 55.1 cents from June's 54.8 cents/lb.

Contributing factors: Discounts were available last month from some suppliers and brokers, according to resin purchasing consultant Resin Technology Inc., Fort Worth, Texas. This followed two successive price hikes that totaled 9 cents/lb but varied in actual implementation, with smaller buyers at the higher end and larger buyers at the lower end. Although June propylene monomer prices moved up 3 cents to 52 cents/lb, July contract prices were expected to drop.

Thermosets, styrenics & nylons up

In the first week of July, makers of unsaturated polyester and vinyl ester resins and gel coats announced increases to take effect before the end of that month. AOC, CCP, Interplastic, and Reichhold all lifted tabs by 5 cents/lb.

Hexion Specialty Chemicals joined Dow in hiking epoxies on July 1 by 6 cents to 10 cents/lb. Meanwhile, Dow announced another 6 cents/lb epoxy increase for Aug. 1.

BASF added another 4 cents/lb to Styrolux and Styroclear SBC resins as of Aug. 1. They already went up 4 cents in June.

And Arkema raised its Rilsan and Orgalloy specialty nylons by 4% to 8% on July 1.