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

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

BASF pre-tax earnings rise, but will miss financial targets for 2015

October 24, 2014 10:16 am ET

BASF SE has raised its expectations for pre-tax earnings in 2014 but warned that it would not hit its financial targets for next year.    More

Image

Sabic, Shell cancel expansion for SADAF joint venture in Saudi Arabia

October 24, 2014 9:19 am ET

Saudi Basic Industries Corp. and Royal Dutch Shell have cancelled plans to expand an existing petrochemical joint venture in Saudi Arabia following...    More

Blow mold maker adding laser cladding

October 24, 2014 10:26 am ET

Blow molds need to be strengthened at points that wear, and an official of Canadian blow mold maker Garrtech Inc. said laser cladding can replace...    More

Image

Sadara CEO says Middle East now has 20 percent of global ethylene capacity

October 24, 2014 9:33 am ET

Sadara CEO Ziad Al-Labban claims that the Middle East's ethylene capacity is now 20 percent of global production.    More

Image

PolyOne increases quarterly profits despite falling sales

October 23, 2014 4:55 pm ET

North American compounding leader PolyOne Corp. saw its third-quarter profit increase, even as sales fell vs. the year-ago period.    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

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

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

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

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

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events