PET & Engineering Resins Move Up.

* PET bottle resins that were once in huge oversupply are now getting tight, and prices are rising accordingly. Crystalline engineering resins--nylon, acetal, and liquid-crystal polymer (LCP)--are also on the upswing. Epoxy prices also got their first boost of the year.

PET tabs go up

A 7[cent]/lb price increase on PET bottle resins took hold by the end of April, boosting market prices to 60-63[cent]/lb. Suppliers confirm that prices of other PET packaging resins have moved up proportionally--from 2[cent] to 7[cent]/lb, depending on volume. Some industry sources predict that another PET price hike could surface this month.

Contributing factors: Spring and early summer are a peak period for PET consumption. But higher feedstock costs, double-digit demand growth--11-12% domestically and 15% worldwide--and tighter supplies also figure into the pricing situation. Resin operating rates have reached the 90% range and are forecasted to go higher next year.

The latest increase should add 3-4[cent]/lb to suppliers' profit margins. Still, they insist that margins have been below reinvestment levels for some time, as resin prices have not kept pace with feedstock increases. Second-quarter price hikes on paraxylene and ethylene glycol could prompt another price hike.

Engineering resins up

Price increases announced last month to take effect June 1-15 gained some additional support. Initially, Dow posted a 12[cent]/lb boost in nylon 66 tabs for June 1. DuPont followed with increases of 8-10% for nylons, 6-8% for acetal, and 5% for LCP, all to be effective June 1. Ticona followed up with 8-10% increases on nylon 66 and 3-5% on acetal (6-8% for specialty and colored grades), effective June 15. Ticona says it successfully raised its LCP prices 5% on Jan. 17, though some customers have long-term price protection that has not yet expired.

The latest news is that BASF Corp. issued a 10% increase on its Ultramid nylon resins and compounds for June 15. No price increase was officially confirmed by Honeywell at press time.

Contributing factors: Factors cited for these increases include increased raw material and energy costs, and the need to restore profitability for reinvestment. Nylon producers also cite tighter supply as a result of strong demand in all markets over the last several months.

TPE price hikes emerge

Upward movement in prices of olefinic and styrenic thermoplastic elastomers appears to be brewing. At least three suppliers made official announcements last month. Advanced Elastomer Systems L.P. (AES) called for a 5% across-the-board price hike on its Santoprene, Vyrum, Dytron XL, Trefsin, and Vistaflex olefinic TPEs, effective June 1. The company said this was its first price hike in more than five years.

Montell Polyolefins issued price hikes on both its Catalloy in-reactor TPOs and its compounded TPOs. For Catalloy resins, Montell is seeking a total of 8[cent]/lb--5[cent] on May 1 and 3[cent] June 1. For compounded TPOs, it issued a 6[cent]/lb increase to be effective May 1.

Teknor Apex has issued a 5[cent]/lb increase on its Uniprene TPV and Telcar TPO compounds, effective June 15. Solvay Engineered Polymers plans to raise prices on its customized TPOs in the third quarter. Price increases are also under consideration at other TPE suppliers, including GLS Corp., DSM Thermoplastic Elastomers, J-Von, and Multibase, Inc.

Contributing factors: Increases in raw material costs, including PP and styrene monomer, are cited by suppliers as justifying higher TPE tabs.

Dow hikes epoxies

Dow Plastics increased off-list prices for several of its epoxy resin and hardener products, as of June 1. Bisphenol-A resins went up 5[cent]/lb; solid solution epoxies (600 series), up 6[cent]/lb; solid epoxies (600 series) and liquid resins (300 series), up 10[cent]/lb; epoxy blends, up 8[cent]/lb; hardeners (50 and 80 series), up 10[cent]; epoxy glycol resins (700 series), up 5[cent]; D.E.N. novolac resins, up 15[cent]; and brominated resins (530 series and 592 series), up 6[cent] and 20[cent], respectively.

Dow last increased prices of these products in December 1999 by 6[cent]/lb, except for 592 series brominated resins, which went up 20[cent]/lb.

Contributing factors: The price hikes are attributed directly to cost increases in hydrocarbon raw materials.