PE prices up
Polyethylene prices moved up 6¢/lb in December, bringing 2004’s total to 20¢/lb. Suppliers will aim to implement their 5¢ increase from December this month. Another price increase in the first quarter is likely. In addition, DuPont hiked several ethylene copolymers by 5¢ to 7¢/lb on Jan. 1.
Contributing factors: PE resin capacity utilization averaged above 95% in 2004. Demand remained strong even through the first part of the usually slow month of December. Ethylene monomer supply was snug, and contract prices were expected to move up from 39.5¢ to about 42¢/lb.
PP up, too
Polypropylene prices rose 4¢/lb in December, bringing the total increase in prices for 2004 to between 22¢ and 23¢/lb. A new 5¢ price hike was issued for Jan. 1 by several major suppliers. Solvay Engineered Polymers hiked its TPOs by 5¢ to 7¢ and TPVs by 10¢/lb on Jan. 1.
Contributing factors: Pricing pressure is attributed to continued strong demand for PP and higher feedstock costs. Feedstock prices are expected to remain at record levels in the next few months, while resin supply will remain tight.
PVC gains 1 to 2 cents
PVC pipe and profile processors expected resin prices to rise 1¢ to 2¢ last month. Resin producers supported a further 2¢ increase for Jan. 1.
Contributing factors: Demand last month was still remarkably strong for a typically slow season. Some demand may also reflect prebuying because both processors and resin producers expect PVC prices to go up a penny a month for the first six months of this year. PVC compounders announced 3¢ increases for Feb. 1 on top of 5¢ hikes for January.
PS, EPS are flat
Users and producers of PS and EPS said pricing in mid-December was level with November. Resin suppliers aim to hold the line on prices because their resins were made with high-priced monomer, even though feedstocks have softened since. PS demand has also softened, which is normal at the year’s end. Hikes of 4¢/lb on the books for Dec. 1 and Jan. 1 may be in doubt if feedstock costs continue to moderate.
PET prices rise
PET resin prices moved up 9¢/lb in December as suppliers pushed to implement their Dec. 1 increases. This boosted the total increase in PET tabs for 2004 to about 28¢/lb.
Contributing factors: The new increase is attributed to a tighter supply/demand balance, which is expected to get even worse. Higher feedstock costs are another factor.
New Year’s nylon hikes
At least three firms raised nylon prices on Jan. 1. BASF hiked its Ultramid and Capron grades by 6¢/lb. Solutia added 10¢ to Ascend and Vydyne grades. DuPont raised tabs on Selar PA nylon barrier resins by 20¢/lb. Selar RB nylon and EVOH blends went up 30¢/lb.
Contributing factors: Nylon demand has been growing about 5% a year, and prices rose 30% to 40% in 2004. Benzene prices were a key driver. Benzene initially rose with oil and gas prices, “but now it is truly a supply/demand issue,” explains one supplier. “We don’t see that changing in the next couple of years. So price increases are not over.”
ABS and PC
Polycarbonate is tight globally and some customers were on allocation last year. Bisphenol-A feedstock was tight, and some PC producers cut back on production in 2004. Suppliers expect 2005 to be tight as well, so prices are likely to go up.
ABS demand was strong in 2004, and producers were hit with stiff increases for styrene and other feedstocks. They aim to rebuild profit margins in 2005, so prices could rise.
Thermosets going up
AOC, CCP, and Interplastic raised polyesters and gel coats by 6¢/lb on Jan. 1 or Jan. 3. Reichhold went up only 5¢. These companies also boosted vinyl esters by 10¢/lb. Resolution Performance Products raised vinyl esters by 6¢. In the past year, prices of polyesters jumped more than 25%. Since these hikes were mostly feedstock driven, they are apt to continue.
Meanwhile, Dow Plastics increased epoxy prices by 16¢ to 20¢/lb, and curing agents by 15¢, on Jan. 1
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