Processors report price increases for PP and PET

By Frank Esposito
Senior Staff Reporter

Published: November 29, 2012 6:00 am ET

Related to this story

Topics Materials Suppliers
Companies & Associations

AKRON, OHIO (Nov. 29, 1:15 p.m. ET) — North American prices for polypropylene and PET bottle resin have continued to climb in recent months.

Regional PP prices have jumped up an average of 4 cents per pound since Nov. 1, following a similar increase in price for propylene monomer feedstock. The increase marks the third straight month that PP prices in the region have headed up, following a combined increase of 3 cents per pound in September and October.

The November increase also edges PP prices for the year up a net of 2 cents per pound since Jan. 1 – an increase of about 2 percent. In addition to the influence of monomer, some buyers expressed concern that short-term outages at plants operated by Braskem Americas in Marcus Hook, Pa., and by Phillips 66 Corp. in Linden, N.J., could impact PP availability in the region. Both plants temporarily lost electrical power when Hurricane Sandy hit the U.S. East Coast on Oct. 29.

One PP buyer in the U.S. Midwest, however, questioned the reality of a possible PP shortage. “I haven’t seen one,” he said. “If there are any, it’s only because producers want to create the shortage in hopes of driving additional price increases beyond the [propylene monomer] price change.”

Another PP market watcher said that he’s seen some PP makers “have some success in margin expansion.”

Through September, U.S./Canadian PP sales were up just under 3 percent, according to the American Chemistry Council in Washington. Domestic sales growth of almost 4 percent was dampened by a 15 percent decline in export sales.

For PET, tightness in feedstock supplies have sent prices up an average of 9 cents per pound since Sept. 1. A 5-cent September increase was followed by increases of 2 cents in both October and November.

The increases – totaling almost 10 percent higher than August prices - have come as a bit of a surprise to buyers in the region, since the beverage-heavy PET market usually slows a bit during the cooler months at the end of the year. Market watchers estimated that current North American PET operating rates are around 75 percent.

The recent PET price increases mean that regional prices now are up a net of 1 cent per pound since Jan. 1 – an increase of about 1 percent. Demand growth for the year in North America is expected to be up no more than 2 percent, industry contacts said.

Plastics News also this week is showing a 1-cent upward correction on North American prices of suspension PVC. PN previously showed an increase of 2 cents per pound for that material for October, but subsequent interviews have shown that the full 3-cent increase that PVC makers were seeking went through to most buyers.

The 1-cent correction means that regional suspension PVC prices were up an average of 3 cents in both September and October. Prices now are up a net of 3 cents from their Jan. 1 levels, for an increase of about 3 percent.

U.S./Canadian PVC sales were up almost 6 percent through September, according to ACC, with domestic growth of almost 7 percent slightly lessened by export growth of more than 4 percent.


Comments

Processors report price increases for PP and PET

By Frank Esposito
Senior Staff Reporter

Published: November 29, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

PolyOne launches Geon BIO PVC using soy-based materials

April 24, 2015 11:48 am ET

More than a decade of research is paying off for Battelle Memorial Institute in the form of Geon BIO PVC compounds from PolyOne Corp.    More

Image

Study suggests infants at lower risk from BPA exposure than expected

April 23, 2015 4:58 pm ET

A new study shows that newborn babies may have less risk from bisphenol A exposure than originally thought.    More

Image

Braskem and Odebrecht reconsidering West Virginia plastics project

April 23, 2015 2:54 pm ET

Brazilian firms Braskem and Odebrecht have confirmed that they are re-evaluating Project Ascent, the major plastics and petrochemicals project they...    More

Image

DuPont center in India gets LEED Certification

April 23, 2015 1:07 pm ET

DuPont Co.'s Knowledge Center in Hyderabad, India, was awarded LEED certification by the U.S. Green Building Council.    More

Image

SiVance opens new R&D lab

April 23, 2015 12:07 pm ET

Milliken & Co. unit SiVance LLC has opened a new research and development lab for silicone and silane technologies in Gainesville, Fla.    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 15, 2015 - September 17, 2015Plastics Caps & Closures - September 2015

More Events