Resin Makers Battle Weak Prices.* Despite widespread weakness in thermoplastic A polymer material that turns to liquid when heated and becomes solid when cooled. There are more than 40 types of thermoplastics, including acrylic, polypropylene, polycarbonate and polyethylene. prices, resin producers are attempting new hikes in PE and engineering resins, including ABS. One thermoset A polymer-based liquid or powder that becomes solid when heated, placed under pressure, treated with a chemical or via radiation. The curing process creates a chemical bond that, unlike a thermoplastic, prevents the material from being remelted. See thermoplastic. supplier announced a surcharge tied specifically to higher energy and fuel costs. PE hike resurrected The 5[cent]/lb PE price hike that was announced for April 1 appeared to have expired from neglect by August. However, it has suddenly been reborn. Huntsman and Dow reintroduced it last month with an effective date of Oct. 1. At press time, similar actions were under study by other producers. Contributing factors: Suppliers point to the sharp rise in oil prices and its impact on ethylene 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). . Moreover, softer resin prices in the last few months have eroded at least half of the 8[cent]/lb accumulated through two previous price hikes this year. All that remains is a net increase of 4[cent] for film grades and 3[cent] for molding grades. Industry sources have predicted that ample new PE capacity coming on stream will exert downward pressure on resin prices for the rest of this year and into the next. Says one supplier, "The overhang of new capacity is having a great impact on buyers, who are expecting better price deals." PP tabs soft Polypropylene resin tabs are weak, with the last price initiative of 3-4[cent]/lb having fallen by the wayside. Contributing factors: New resin capacity is putting a heavy lid on prices and could even force them lower. Dow is expected to start up its new 550-million-lb/yr plant in Texas toward the end of the year. Resin tabs are now following the monomer's price, which is trending downward owing to owing to prep. Because of; on account of: I couldn't attend, owing to illness. owing to prep → debido a, por causa de a glut in supply. PVC PVC: see polyvinyl chloride. PVC in full polyvinyl chloride Synthetic resin, an organic polymer made by treating vinyl chloride monomers with a peroxide. prices keep tailing Commodity PVC resins have dropped a penny a month since they peaked in June. Some siding extruders say resin is down 3 [cent]/lb since June, while some makers and users of pipe grade peg the drop at 4[cent] over the same time frame, including a 2[cent] drop in August alone. On the other hand, users of specialized sheet and bottle grades may have seen no price decrease at all. Prices of commodity grades were expected to drift lower by another penny in September. Contributing factors: Construction markets slumped, weakening demand for pipe and siding. Even export prices are low. Resin producers cut back production, but some now say they didn't cut back enough to stiffen stiff·en tr. & intr.v. stiff·ened, stiff·en·ing, stiff·ens To make or become stiff or stiffer. stiff prices. PS prices still flat Polystyrene producers and users say prices were flat in mid-September despite indications that styrene sty·rene n. A colorless oily liquid from which polystyrenes, plastics, and synthetic rubber are produced. Also called vinylbenzene. monomer prices were headed higher. Monomer producers announced a 2[cent] hike for September, but at press time it was too soon to say whether it would take effect. Contributing factors: Processors say packaging demand is steady and flat. CD jewel-box markets, however, have slowed. And pricing for exports to the Far East is also down. Engineering resins jump Price increases of 8[cent]/lb set for Sept. 15 were announced by Dow Plastics for SAN, ABS, and PO/ABS, along with a 10[cent]/lb hike for polycarbonate A category of plastic materials used to make a myriad of products, including CDs and CD-ROMs. . Note that Dow had announced an 8[cent] across-the-board increase on all ABS resins for July 1. But due to "competitive pressure," the company issued a 5[cent] temporary voluntary allowance (TVA TVA: see Tennessee Valley Authority. ) on pipe and fitting grades in mid-July. The latest 8[cent]/lb increase is across the board, soit effectively still leaves pipe and fitting grades 5[cent] behind other ABS resins. At press time, neither GE, Bayer, nor 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 would confirm any price increases on their materials. As for polycarbonate, Dow also appears to be flying solo with its 10[cent]/lb increase. At press time, Dow opened another front by announcing a 12[cent]/lb increase for all Vydyne nylon 66 and 66/6 resins, effeclive Oct. 15. Surcharge on vinyl ester Vinyl Ester, or Vinylester, is a resin produced by the esterification of an epoxy resin with an unsaturated monocarboxylic acid. The reaction product is then dissolved in a reactive solvent, such as styrene, to a 35 - 45 percent content by weight. Dow said last month that it will impose an energy and fuel surcharge on all shipments ofDerakane vinyl esters as of Oct. 15. The surcharge is $100 per truckload and $25 for iti orders. BFGoodrich Hikes TPUs BFGoodrich joined other producers of thermoplastic urethanes in raising its prices 5% as of Oct. 15. The company also raised the minimum order quantity from 50 lb to 500 lb. |
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