Resin Prices Are Soaring
Volatile energy and petrochemical feedstock prices, unsettled by events in Venezuela and the Middle East, are having a predictable effect on resin prices. Price hikes in almost all resins are coming thick and fast, making it hard to keep track of current market prices.
PE prices shoot up
Polyethylene prices were on the rise in March and April for processors with 30-day and 60-day contract protection, respectively, as suppliers sought to implement 6¢/lb increases scheduled for Feb. 1. A new 5¢/lb hike for March 15, supported by all major suppliers, was also under way. Moreover, an energy surcharge of 6¢/lb was issued in March by Nova Chemicals for all purchases (no exceptions), effective immediately. At press time, other suppliers were reportedly instituting similar surcharges.
Meanwhile, Dow Wire & Cable Compounds in Houston boosted all its polyolefin wire/cable materials by 5¢/lb on April 1. This comes on top of a 6¢/lb increase on Jan. 24. Spot prices are up 11¢/lb since the start of the year.
Contributing factors: The resin increases are driven by the unprecedented price escalation of feedstock and energy costs, a situation that is expected to continue. Moreover, resin supply has tightened considerably as production has been curtailed. LL/LDPE film grades are particularly tight, while HDPE injection and blow molding grades are a bit looser.
PP prices up
Polypropylene prices went up 3¢/lb in March, following implementation of an earlier 3¢ hike in February. A new round of 5¢ increases was announced for April 1. The emergence of still more increases for May is considered probable. Spot resin prices are up 9¢/lb since the start of the year.
Contributing factors: Resin suppliers are trying to catch up with propylene monomer costs. Polymer-grade propylene contract prices went up 2¢/lb in January, 2¢ in February, 4¢ in March, and April appeared ripe for another 3¢ increase. That would total 11¢/lb in four months, bringing propylene prices to over 30¢/lb. (Propylene’s last major price spike was in 1999, when in reached 27¢/lb).
Resin suppliers say they will barely break even when all pending increases are implemented, totaling 11¢/lb. Meanwhile, resin demand is strong and supply is tight because of a temporary shortness of monomer supply.
Engineering resins rise
Briefly summarizing recent changes in engineering and other thermoplastics:
- BASF hiked nylon injection molding grades by 14¢/lb on March 18. At press time last month there was no word of anyone else following suit.
- PBT resins were raised 7¢ by BASF on March 18 and 9¢/lb by Ticona on April 1. GE said it also raised PBT by an unspecified amount.
- BASF and Ticona both hiked acetals 10¢/lb on April 1.
- Ticona raised tabs on Impet PET, Riteflex polyester TPE, and Vadar polyester alloy by 7¢ April 1.
- Dow pushed ABS and SAN prices up 7¢ on April 1. GE said its ABS prices were up, too.
- Polycarbonate suppliers also admitted to raising prices but would not discuss actual amounts.
- Acrylic prices are on the rise with an 8¢/lb announcement by Cyro for April 1. Another increase is said to be likely within a month.
TDI, MDI, polyols up
April 1 price hikes on polyurethane chemicals—TDI, MDI, and polyols—have been issued by all major suppliers. Dow, Bayer, BASF, and Huntsman issued price increases of 10¢/lb for TDI, and 7¢ to 8¢/lb for pure and polymeric MDI. Rigid and flexible polyols went up 6-7¢, and BASF also raised its rigid and flexible foam systems 8¢ and spray-foam systems 10¢/lb. Dow added a 3¢/lb upcharge for tank-truck deliveries of all PUR products.
Moreover, in a surprising move, Dow issued further increases to take effect March 15. They include an additional 11¢/lb hike on TDI and 4¢/lb on MDI and polyether and copolymer polyols.
Thermosets go up again
After 4¢/lb hikes on unsaturated polyester and vinyl ester resins in February, suppliers announced similar or larger increases for early to mid-March. Reichhold, Interplastic, and Cook Composites raised polyesters 4¢/lb. Dow Plastics did the same for Derakane vinyl esters. AOC, however, announced a 5¢/lb hike on all resins, gel coats, and pigment pastes. Ashland did the same for its polyesters, vinyl esters, and gel coats. Most suppliers say another increase is likely for May.
Epoxy prices are up, too. Dow raised epoxy resins and hardeners on April 1. Resins went up 7¢ to 10¢/lb, while hardeners rose 6¢.
Market Prices Effective Mid-Mar A |
|
|
KEY: Colored areas indicate pricing activity. An arrow () indicates direction of price change. aTruckload, unless otherwise specified. bUnfilled, natural color, unless otherwise specified. cBased on typical or average density. dNot applicable. eNovolac and anhydride grades for coils, bushings, transformers. fNovolac and anhydride grades for resisitors, capacitors, diodes. gIn quantities of 20,000 lb. h19,800-lb load. |
Related Content
Polymer Science for Those Who Work With Plastics: Why Entanglements — Not Just Molecular Weight — Drive Plastic Performance
Ever try running your fingers through tangled hair? Yeah … that’s not fun, but that’s what happens at the molecular level when polymer chains reach the right length. They wrap around each other, intertwine and … get stuck — and those tangles are the real reason plastics perform the way they do.
Read MorePrices for PE, PS, PVC, PET Trending Flat; PP to Drop
Despite price increase nominations going into second quarter, it appeared there was potential for generally flat pricing with the exception of a major downward correction for PP.
Read MorePart 3: The World of Molding Thermosets
Thermosets were the prevalent material in the early history of plastics, but were soon overtaken by thermoplastics in injection molding applications.
Read MorePolymer Science for Those Who Work With Plastics: Molecular Weight — What It Is and Why It Matters
Molecular weight might seem like an abstract concept, but it plays a crucial role in determining the behavior of plastics during processing and in their final applications.
Read MoreRead Next
Lead the Conversation, Change the Conversation
Coverage of single-use plastics can be both misleading and demoralizing. Here are 10 tips for changing the perception of the plastics industry at your company and in your community.
Read MoreFor PLASTICS' CEO Seaholm, NPE to Shine Light on Sustainability Successes
With advocacy, communication and sustainability as three main pillars, Seaholm leads a trade association to NPE that ‘is more active today than we have ever been.’
Read More