Price hikes take a breather.

A short, sharp rebound in the first quarter called an abrupt halt to the long slide in commodity resin prices. However, there were signs last month that some hikes would be cut back or delayed indefinitely. With resin demand still weak, it all seemed to hinge on where monomer/feedstock prices were going.

PE HIKE ON HOLD?

Polyethylene prices held steady through early March, following implementation of a 7 cents/lb increase. A 5 cents hike originally scheduled for February was delayed to March 1 and then to April for certain markets, according to industry observers. Meanwhile, the London Metal Exchange (LME) North American short-term futures contract in blown-film butene LLDPE for April rose to 35 cents/1b from 34 cents in March.

Contributing factors: At press time, it was unclear if any or all of the 5 cents increase would be implemented. Resin capacity utilization is said to be below 70%, but that's not the whole story. "Resin supply is reasonably tight, particularly for film grades, due to capacity cutbacks," says Mark Quiner, editor at PetroChem Wire, Houston.

Ethylene monomer contract prices for February settled up 0.5 cents/lb at 32 cents/lb. But Quiner says monomer spot prices are a better indicator of the direction of PE price movement. He notes that spot ethylene prices rose 6 cents through February, peaking at 33.25 cents/lb, as a result of planned and unplanned cracker shutdowns and logistical constraints. However, spot ethylene prices fell back sharply to 26.25 cents on March 10 as crackers restarted.

The very next day, spot ethylene dropped to 25 cents/lb with futures trading at 21.5 cents, according to Mike Burns, global business director for PE at resin purchasing consukant Resin Technology, Inc. (RTI) in Fort Worth, Texas. "We tell our clients that ethylene prices below 27 cents/lb will not result in PE prices moving upwards." Burns says North American PE prices are now competitive globally and he expects the 7 cents/lb increase will stay in place, because resin suppliers need it to retain profitability. He sees the 5 cents increase as purely feedstock driven and unlikely to be implemented if ethylene prices continue to fall.

PP PRICES UP

Polypropylene prices generally moved up 6 cents/lb in February, following a 2 cents increase in the previous month. A new price hike of 5 cents to 6 cents for March 1 also emerged. LME's North American short-term futures contract in g-p injection-grade homopolymer in April dropped to 31 cents/lb after rising to 33 cents in March.

Contributing factors: PP resin tabs followed the movement of propylene monomer. Propylene contracts moved up 6 cents to 28 cents/lb in February, after January's 2 cents rise, which was spurred by short supplies, owing to temporary cracker shutdowns and lower supplies from refineries. Quiner at PetroChem Wire says preliminary settlements for March monomer contracts indicated a 1 cents increase to 29 cents/lb.

Scott Newell, RTI's director of client services for PP, does not see any chance of another PP price hike. "Secondary resin markets have loosened up and prices are coming down. While the second quarter might see some increase in demand over February's all-time low, it is still likely to show declines in PP consumption, except perhaps in food and beverage packaging."

PET PRICES UP, TOO

PET prices moved up 4 cents/lb in February, after a precipitous drop in the fourth quarter and January. A 5 cents/lb price hike for March 1 was still on the table.

Contributing factors: PET tabs had followed declining prices of paraxylene and ethylene glycol feedstocks, but suppliers say there was an "overcorrection" of about 4 cents/lb. Says a source at one major PET maker, "Starting from last July, feedstock prices dropped a total of 32 cents/lb while PET prices fell 36 cents/lb."

Implementation of the March price hike was uncertain at press time. A seasonal upswing for PET typically starts in March, in anticipation of strong second-quarter beverage demand. But PET sales in February and March rose only marginally--about 2% to 3%. "We did not see the normal upswing this March, but there is an uptick in single-serve beverage sales at convenient stores as gas prices have dropped," says one resin supplier.

PET plant utilization reportedly is in the low 70% range. The only scheduled new capacity--from Indorama's Alpha-Pet subsidiary in Decatur, Ala.--will equal the permanent shutdowns of PET capacity by Invista and Wellman that have already taken place. However, there are industry reports that a new 800- to 900-million-lb production line at StarPet in North Carolina will start up as soon as June, rather than by the year's end as originally planned.

PVC HIKES SPLIT

PVC resin producers ended up splitting the February 5 cents/lb increase after Georgia Gulf announced that it was delaying 2 cents of that hike to March 1. As of mid-March, Georgia Gulf and OxyChem had announced a further 3 cents increase for April 1.

Contributing factors: Attempting a price increase in the face of very weak demand, at a time when ethylene monomer prices are expected to soften, sounds like a long shot. Some monomer capacity that had been shut down was scheduled to come back up in March, so ethylene pricing is expected to be weak. Contract ethylene settled at 32 cents/lb in February, while spot prices in mid-March were at 31 cents. According to the American Plastics Council, resin producer operating rates in January were only 64%.

PS HIKE COULD SHRINK

Polystyrene resin producers moved their 5 cents/lb price increase from Feb. 15 to March 1. But on March 1, Total cut its hike to 3 cents with a TVA for the rest, so others will probably have to follow suit.

Contributing factors: Benzene feedstock prices are soft. Contract benzene jumped from $1.01/gal in January to $1.35 in February (the ostensible reason for the 5 cents hike in PS), but benzene fell back 6 cents to $1.29 in March. Spot benzene was trading even lower in mid-March at $1.18 to $1.19/gal, adding pressure to shrink the PS increase. Resin demand was steady in the first quarter, with foodservice markets so-so and appliances and electronics very weak.

By Jan H. Schut, Senior Editor & Lilli Manolis Sherman, Contributing Editor

MARKET PRICES EFFECTIVE MID-MARCH (a)

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

ABS
 MED IMPACT 90-110 340-412
 HI IMPACT 95-130 359-491
 X-HI IMPACT 110-150 415-567
 HI HEAT 90-125 340-472
 PIPE 85-95 321-359
 SHEET 90-105 340-397
 TRANSPARENT 134-205 506-774
 FITTINGS 94-115 355-434
 PLATING 165 623
 FLAME RET 120-140 453-529
 STRUCT FM 92-102 347-385
 10% GLASS 134-145 506-548
 30% GLASS 129-141 487
ABS/PC ALLOY 154-185 532-699
ABS/PVC
ALLOY 139-144 525-544
ABS/NYLON
ALLOY 199-355 752-1341

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 8.60
CAB 189 8.20
CAP 189 8.20

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 750-1200 48-76.9

IONOMER
PACKAGING 127-166 4.3-6.0
INDUSTRIAL 150-244 5.0-8.3

LIQUID-CRYSTAL
POLYMERS
INJECTION
 MIN FILLED 790-1135 48.3-69.4
 GLASS FILLED 795-995 48.6-60.8
 CARBON
 FILLED 1800-2100 110.1-128.5
 UNFILLED 1100-1300 67.3-79.6
EXTRUSION
 UNFILLED 1300-2300 79.5-140.7

MELAMINE COMPOUND 90-94 5.5-5.6

MELAMINE/PHENOLIC
COMPOUND 75-83 4.5-5.0

NYLON
TYPE 6 155-175 6.3-7.1
 MIN FILLED 135-165 5.5-6.7
 30% GLASS 140-165 5.7-6.7
TYPE 66 160-190 6.5-7.7
 MIN FILLED 145-155 5.9-6.3
 30% GLASS 150-192 6.1-7.8
TYPE 69 250-276 9.7-10.7
TYPE 6/10 286-313 12.4-13.6
TYPE 612 400 15.30
 30% GLASS 309-311 14.70
 40% GLASS 309 14.70
TYPE 46 350 17.60
TYPE 11 650-750 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

POLYAMIDEMIDE (g)
UNFILLED 2750 148.5
30% GLASS 2500 135
30% CARBON 3500 185
 FIBER

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 158-173 ?* 7.9
 20% GLASS 164-181 ?* 8.2
 30% GLASS 165-207 ?* 9.3
EXTRUSION 133-171 ?* 7.7
BLOW MOLD 138-176 ?* 7.5
STRUCT FOAM 137-172 ?* 7.8
 20% GLASS 219-243 ?* 11.0
FR 153-188 ?* 8.5
CD 124-186 ?* 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) 71-75 ?* 3.6-3.7 ?*
 MOD PET
 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 151-162 NA (d)
 ISOPHTHALIC 175-196 NA (d)
 BIS-A 210-235 NA (d)

POLYETHER-
KETONE (PEEK) 4400 231
 30% GLASS 3300 173

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 625-700 30-34
 GLASS FILLED 725-790 35-38

POLYETHYLENE
(RAILCAR) LDPE
 G-P MOLDING
 & EXTRU 50-52 1.7
 INJECTION 52-54 1.7-1.8
 LID RESIN 55-57 1.8-1.9
 LINER 52-54 1.7-1.8
 CLARITY 48-50 1.6-1.7
 EXTRU COATG 53-55 1.8
 BLOW MOLD 55-57 1.8-1.9

LLDPE,
BUTENE-BASED
 G-P MOLDING 55-57 1.8-1.9
 FILM 52-54 1.7-1.8
 LME 30-DAY (j) 35 ?* 1.3 ?*
 ROTOMOLD 49-51 1.6-1.7
LLDPE,
HAO-BASED
 G-PMOLDING 50-52 1.7
 LID RESIN 60-62 1.9
 LINER FILM 53-55 1.8
HDPE
 G-P INJ MOLD 50-52 1.7
 FILM 57-59 1.9
 BLOW MOLD 58-60 1.9-2.0

HMW-HDPE
 BLOW
 MOLDING 54-56 1.8
 FILM 55-57 1.9
 PIPE 62-64 2.0-2.1
UHMW-PE 122-152 4.1-5.1

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 46-48 ?* 1.5-16 ?*
 LME 30-DAY (j) 31.0 ?* 1.1 ?*
 EXTRUSION
 FIBER 44-46 ?* 1.4-1.5 ?*
 PROFILES 52-54 ?* 1.7 ?*
 RANDOM
 COPOL
 BLOW MOLDING 50-52 ?* 1.6-1.7 ?*
 FILM 50-52 ?* 1.6-1.7 ?*
 INJECTION 49-51 ?* 1.6 ?*
 IMPACT COPOL
 MED IMP 60-62 ?* 1.9-2.0 ?*
 HI IMP 62-64 ?* 2.0-2.1 ?*

POLYSTYRENE
(RAILCAR)
 G-P CRYSTAL 53-59 2.0-2.2
 HI HEAT 56-61 2.1-2.3
 HIPS 62-68 2.3-2.6
 SUPER HI IMP 69-79 2.4-3.0
 FR 75-80 2.8-3.0
 STRUCT FM
 (FR) 63-65 2.4

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
 MDI 125-145 NA (d)
 80/20 TDI 135-145 NA (d)

PVC RESIN
(RAILCAR)
 G-P HOMOPOL 46-48 ?* NA (d)
 PIPE 45 ?* NA (d)
 FILM 51 ?* NA (d)
 COPOLYMER
 FLOORING 71-74 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 38.1-39.3
 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 2.4
 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 221-245 NA (d)
 HEAT & COR
 RES 246-258 NA (d)

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) Novolac and anhydride grades for
resistors, capacitors, diodes. (g) In quantities of 20,000 lb.
(h) 19,800-lb load. (i) Prices include benzene surcharge. (j) LME
30-day futures contract for lots of 54,564 lb.

Note: Colored areas indicate pricing activity indicated with *.

Article Details

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Author:	Schut, Jan H.; Sherman, Lilli Manolis
Publication:	Plastics Technology
Date:	Apr 1, 2009
Words:	1980
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Topics:	Monomers Polyethylene