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Prices of most commodity resins were flat or slipping downhill in February and March. Polypropylene posted what may be only a temporary gain. Only PET prices appear firm and trending upward.

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PE prices down

Polyethylene resin tabs dropped 2¢/lb in early March, which brought the total slump in prices since December to 14¢/lb. There was also talk of another 2¢ drop in March, which would cut in half the price inflation in the second half of 2005. Still, suppliers have not rescinded their December 5¢ increases, but only delayed them again, to April 1.

Meanwhile, international prices at the London Metal Exchange were falling last month. LME’s April short-term futures contract for blown film butene LLDPE was at 51¢/lb, down from 58.5¢ for March and 55.6¢/lb for February.

Contributing factors: With falling energy and feedstock prices, PE resin tabs could soon drop another 4¢ to 6¢/lb, lopping a total of 20¢ to 22¢ off last year’s hikes. Says Bill Bowie, COO of purchasing consultant Resin Technology, Inc. (RTi) in Fort Worth, Texas, “We have seen lower resin orders from PE film processors. One reason is the large volume of imported film and bags. Processors are buying only what they need in the expectation that prices will go down.”

Adds a major PE supplier, “Our margins are still good because of lower feedstock costs. Ethylene contract prices have dropped to 50¢/lb from the 56.5¢ in November-December. Demand is fairly good, and we hope for 5% to 6% growth over last year. With no new capacity coming on stream, there is no likelihood of an oversupplied market.”

PP prices up—for now

Polypropylene resin tabs rose 4¢ to 6¢/lb from February to March, reflecting partial implementation of 12¢ to 16¢/lb hikes slated for those two months. LME’s April short-term futures contract for g-p injection grade dropped to 45.6¢/lb from 54.9¢ for March and 52.2¢ for February.

Contributing factors: Some industry sources think recent increases could be short-lived. Says RTi’s Bowie, “Spot prices at some accounts have fallen about 4¢/lb. Within the next 30 days, resin producers are likely to lose the average 4.5¢/lb they gained last quarter. Demand has slowed and deals are being made on the spot market to move material quickly.”

Propylene monomer contract prices rose 4.5¢/lb in February, but are expected to hold even now because crude oil prices have dropped.

PET prices increase

Bottle-grade PET prices moved up 3¢/lb in February, in partial implementation of 5¢ hikes early in the first quarter. Most suppliers also came out with a 4¢/lb increase for March 1, and some sources expect prices to move up 2¢ more.

Contributing factors: “Prices of raw materials like paraxylene and ethylene glycol rose over 5¢/lb in January and February. While those prices slipped back some in March, margins remained unfavorable for resin suppliers,” says one industry analyst.

Suppliers say resin demand is pretty good. According to one, “Domestic demand is likely to be up 6% to 7% over last year, although we lost about 3% of that to Asian imports.”

Of more concern to suppliers is looming resin oversupply with over 1.1 billion lb of new capacity coming on stream by early 2007. It will start with 200 million lb from Wellman in June. Prices are apt to start dropping by the end of June and suppliers foresee eight to 12 months of excess supply.

PVC remains soft

PVC resin prices dropped 1.5¢/lb in February and were expected to lose another 1.5¢ to 2¢ in March. Suppliers delayed their 2¢/lb hike from January to April 1, but they are hoping the mere threat of an increase will halt the price slide.

Contributing factors: The usual spring pick-up in demand hasn’t kicked in yet. Pipe producers’ inventories are up. Window orders are mixed, and siding orders are soft for this time of year. Ethylene feedstock costs are falling.

PS hike deferred

Polystyrene contract prices held even in March. Tabs for plentiful offspec resin dropped 3¢/lb or more. Producers’ 6¢ hike for Feb. 1 was trimmed to 5¢ and delayed to April 1. It is probably dead, some suppliers concede.

Contributing factors: January’s PS demand was 14% ahead of December’s, but demand in February and March was only so-so. High prices have hurt—some cup makers switched to paper, and lids moved to PET.

Contract prices for benzene feedstock dropped from $2.86/gal in February to $2.73 in March, and futures were as low as $2.60 for May. 

RESIN GRADEb ¢/LB ¢/CU INc    ABS           MED IMPACT    80 - 90      3.0 - 3.4       HI IMPACT    85 - 125      3.2 - 4.7       X-HI IMPACT    95 - 140      3.6 - 5.3       HI HEAT    85 - 110      3.8       PIPE    85 - 110      3.2 - 4.1       SHEET    90 - 110      3.4 - 4.2       TRANSPARENT    125 - 165      4.9 - 6.4       FITTINGS    85 - 115      3.2 - 4.3       PLATING    95 - 105      3.5 - 3.9       FLAME RET    120 - 140      4.6 - 5.9       STRUCT FM    83 - 97      3.6 - 4.3       10% GLASS    125 - 140      5.0 - 5.6       30% GLASS    116 - 136      5.3 - 6.3       ABS/PC ALLOY    145 - 180      5.5 - 6.8       ABS/PVC ALLOY    130 - 135      5.8 - 6.1       ABS/NYLON ALLOY    190      7.3       ACETAL           HOMOPOL    130 - 147      6.7 - 7.3       20% GLASS    160 - 220      9.0 - 12.4       COPOLYMER    133 - 145      6.8 - 7.4       25% GLASS    160 - 230      8.1 - 11.7       ACRYLIC           G-P    117      5.0       IMPACT    192      8.2       ACRYLONITRILE COPOL           EXTRUSION    101 - 116      4.0 - 4.6       INJECTION    120 - 135      4.8 - 5.4       ALKYD  65 - 74    4.9 - 5.5       CELLULOSICS           ACETATE    187      8.6       CAB    189      8.2       CAP    189      8.2       DAP (G-P)  251 - 497    16.7 - 34.7       EPOXY           G-P RESIN    116 - 126      NAd       COMPOUNDS               C/B/Te    123 - 166      9.4 - 12.9       R/C/Df    208 - 271      15.3 - 20.1       SEMICONDUCTOR               NOVOLAC    193 - 228      13.1 - 15.9       ANHYDRIDE    188 - 268      13.9 - 19.2       EVA           INJECTION    46 - 52      1.5 - 1.7       FILM EXTRU    42 - 49      1.4 - 1.6       EVOH  265    11.3       FLUORO-POLYMER           CTFE    2500 - 5500     193 - 424       ECTFE    1470 - 1680     93.1 - 107.7      ETFE    1155 - 1680     70.7 - 102.8      FEP    971 - 1470      74.8 - 113.2      PFA    1785 - 2520     134.9 - 190.5       PTFE    450 - 900      34.8 - 69.7       PVDF    680 - 900      43.3 - 57.3       IONOMER           PACKAGING    127 - 166      4.3 - 6.0       INDUSTRIAL    150 - 244      5.0 - 8.3       LIQUID-CRYSTAL POLYMERS           INJECTION MIN FILLED    690 - 1035      44.2 - 72.1       GLASS FILLED    695 - 895      40 - 52       CARBON FILLED    1700 - 2000     83.2 - 138.6      UNFILLED    1000 - 1200     58 - 70       EXTRUSION UNFILLED    1200 - 2200     60.5 - 110.9      MELAMINE COMPOUND  90 - 94    5.5 - 5.6       MELAMINE/PHENOLIC COMPOUND  75 - 83    4.5 - 5.0       NYLON           TYPE 6    139 - 159      5.7 - 6.5       MIN FILLED    131 - 144      5.4 - 5.9       30% GLASS    148 - 173      6.0 - 7.0       TYPE 66    153 - 168      6.3 - 6.9       MIN FILLED    151 - 159      6.2 - 6.5       30% GLASS    142 - 192      5.8 - 7.9       TYPE 69    250 - 276      9.7 - 10.7       TYPE 6/10    286 - 313      12.4 - 13.6       TYPE 612    400      15.3       30% GLASS    309 - 311      14.7       40% GLASS    309      14.7       TYPE 46    295      12.6       TYPE 11    329 - 341      13.6 - 14.1       30% GLASS    331 - 350      15.0 - 15.8       40% GLASS    347 - 360      17.7 - 18.5       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       POLYAMIDE-IMIDEg           UNFILLED    2750      148.5       30% GLASS    2500      135       30% CARBON FIB.    3500      185       POLYARYLATE  200 - 280    8.8 - 12.3       POLYARYL SULFONE  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    138 - 165      5.9 - 7.0       20% GLASS    177 - 190      7.6 - 8.2       30% GLASS    178 - 217      7.6 - 9.3       EXTRUSION    145 - 180      6.3 - 7.8       BLOW MOLD    155 - 190      6.7 - 8.2       STRUCT FOAM    149 - 181      6.4 - 7.8       20% GLASS    235 - 255      10.1 - 11.0       FR    166 - 197      7.1 - 8.5       CD    140 - 200      6.0 - 8.6       POLYESTER (TP) PBT TYPE           UNFILLED    143 - 150      6.9       HI-IMP    154 - 165      7.6       30% GLASS, FR    185 - 207      11.9       STRUCT FOAM    159 - 165      NAd       PET           BOTTLE (RAILCAR)    82 - 87      4.1 - 4.4       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

RESIN GRADEb ¢/LB ¢/CU INc    POLYESTER THERMOSET           G-P ORTHO    135 - 140      NAd       ISOPHTHALIC    160 - 170      NAd       BIS-A    205 - 210      NAd       PEEK  4400    231       30% GLASS    3300      173       POLYETHERIMIDE  641 - 646    29.3 - 29.5       30% GLASS    526 - 531      24.0 - 24.2       POLYETHERKETONE (PEK)  2950    130.1       30% GLASS    2600      153       POLYETHERSULFONE  350 - 400    17.2 - 19.7       30% GLASS    425 - 525      21 - 25.9       POLYETHYLENE (RAILCAR) LDPE           G-P MOLDING & EXTRU    84 - 86     2.7 - 2.8      INJECTION    87 - 89     2.8 - 2.9      LID RESIN    89 - 91     2.9 - 3.0      LINER    85 - 87     2.7 - 2.8      CLARITY    83 - 85     2.7 - 2.8      EXTRU COATG    87 - 89     2.8 - 2.9      BLOW MOLD    89 - 91     2.9 - 3.0      LLDPE, BUTENE BASED           G-P MOLDING    73 - 75     2.4 - 2.5      LME 30-DAYj    51     1.9      FILM    75 - 77     2.5 - 2.6      ROTOMOLD    77 - 79     2.5 - 2.6      LLDPE, HAO-BASED           G-P MOLDING    87 - 89     2.8 - 2.9      LID RESIN    88 - 90     2.9 - 3.0      LINER FILM    90 - 92     3.0      HDPE           G-P INJ MOLD    74 - 76     2.5 - 2.6      FILM    84 - 86     2.8 - 2.9      BLOW MOLD    78 - 80     2.7 - 2.8      HMW-HDPE           BLOW MOLDING    83 - 85     2.8 - 2.9      FILM    85 - 87     2.9      PIPE    90 - 92     2.9 - 3.0      UHMW-PE  100 - 125    3.6 - 3.7       PPE/PPO BASED RESIN           INJECTION    180      6.8       20% GLASSh    283      12.3       30% GLASSh    291      13.3       EXTRUSIONh    242      9.2       STRUCT FM    231      NAd       PPS           40% GLASS    357 - 404      21.2 - 24.0       55% GLASS/MINERAL    289 - 310      20.8 - 22.3       65% GLASS/MINERAL    226 - 273      15.5 - 18.7       POLYPROPYLENE (RAILCAR)           G-P HOMOPOL INJECTION    80 - 82      2.6       LME 30-DAYj    45.6     1.5      EXTRUSION FIBER    79 - 81      2.5 - 2.6       PROFILES    84 - 85      2.7 - 2.8       RANDOM COPOL               BLOW MOLDING    85 - 87      2.7 - 2.8       FILM    84 - 86      2.7 - 2.8       INJECTION    82 - 84      2.6 - 2.7       IMPACT COPOL               MED IMP    93 - 95      3.0       HI IMP    96 - 98     3.0 - 3.1       POLYSTYRENE (RAILCAR)           G-P CRYSTAL    68 - 76      2.5 - 2.8       HI HEAT    71 - 79      2.7 - 3.0       HIPS    69 - 77      2.6 - 2.8       SUPER HI IMP    79 - 85      3.0 - 3.2       FR    87 - 95      3.3 - 3.5       STRUCT FM (FR)    105 - 108            EPS           UNMODIFIED    85 - 88      NAd       MODIFIED    86 - 90      NAd       POLYSULFONE  605    27 - 27.3       10% GLASS 430 20.6    557 - 612      24.9 - 25       30% GLASS 372 20.01    557 - 562      24.9 - 25       POLYURETHANE (TP)           ESTER TYPE    185 - 255      8 - 11       ETHER TYPE    245 - 295      10.6 - 13       PU ISOCYANATES           POLYMERIC MDI    120 - 135      NAd       80/20 TDI    90 - 98      NAd       PVC RESIN (RAILCAR)           G-P HOMOPOL    55 - 57     NAd       PIPE    52 - 54     NAd       FILM    63 - 66     NAd       COPOLYMER FLOORING    73 - 75      NAd       DISPERSION HOMOPOLY    84 - 90      NAd       COPOLYMER    89 - 93      NAd       CPVC PIPE COMPOUND    119      NAd       PVDC           EXTRUDABLE    162      NAd       SILICONES           MOLD. COMP.    581 - 640      38.1 - 39.3       SPECIALTY GR.    891 - 3148     NAd       SILICONE/EPOXY    339 - 343      22.5 - 22.8       STYRENEACRYLIC  108 - 112    3.7 - 4.0       SAN (G-P)  66 - 74    2.5 - 2.8       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    287 - 337      10.4 - 12.3       POLYESTER    200 - 310      8.8 - 13.6       STYRENIC    82 - 237      2.9 - 8.3       UREA MOLDING COMPOUND           BLACK & BROWN    76      3.8       WHITE & IVORY    81      4.0       VINYL ESTER           COR RES    205 - 217      NAd       HEAT & COR RES    230      NAd