PP, PVC resin prices dip in October

By Frank Esposito
Senior Staff Reporter

Published: October 31, 2013 4:52 pm ET
Updated: November 1, 2013 2:37 pm ET

Related to this story

Topics PVC, Materials Suppliers, Polypropylene

AKRON, OHIO — North American prices for polypropylene and suspension PVC resins each dropped in October as seasonal demand declined.

Regional PP prices slid an average of 2 cents per pound, while PVC prices declined by an average of 1 cent. The PP decrease comes after prices were flat in September. It's the first pricing move for that material since prices rose an average of 5 cents per pound in August.

Combined with earlier price moves, the October decrease means that regional PP prices now are down a net of 5 cents per pound so far in 2013.

PP's broad range of uses in commercial and industrial products was lifted earlier in the year as U.S. GDP growth improved from 1.8 percent in the first quarter of 2013 to 2.5 percent in the second quarter. The U.S. unemployment rate also has declined as 2013 has rolled on, dropping from a high of 7.9 percent in February to a low of 7.2 percent in September.

For PVC, the 1-cent drop is the first move seen in the market since prices posted a 2-cent drop in May. The four-month period of flat pricing is rare for the North American PVC market. It's only the second time since 2003 that PVC prices remained unchanged for three months or more, according to the Plastics News resin pricing chart. The previous such flat stretch occurred in the second half of 2011.

Even with the October drop, regional PVC prices remain up a net of 5 cents per pound so far in 2013, according to the PN chart.

North American PVC sales in 2013 have been helped by the continued comeback of the U.S. housing market, since construction-related uses account for about 60 percent of domestic PVC use. U.S. housing starts in August came in at an annual rate of 891,000, according to the National Association of Homebuilders in Washington. That rate is up about 1 percent vs. July and almost 19 percent vs. August 2012.

So far in 2013, U.S. housing starts are on pace to finish around 900,000. That would be an improvement of about 15 percent vs. 2012 and the country's highest building total since 2008.


Comments

PP, PVC resin prices dip in October

By Frank Esposito
Senior Staff Reporter

Published: October 31, 2013 4:52 pm ET
Updated: November 1, 2013 2:37 pm ET

Post Your Comments


Back to story


More stories

Image

China's Polymax Elastomer launches U.S. production in Illinois

September 17, 2014 3:35 pm ET

Chinese materials maker Polymax Elastomer Technology Co. Ltd. has opened a North American production site and headquarters in Waukegan, Ill.    More

Image

Firewire rides aerospace materials to new surfboard design

September 17, 2014 2:18 pm ET

Surfboard manufacturer Firewire Surfboards Ltd. has developed a new board design it says is more flexible than its predecessor designs.    More

Image

PolyOne helps nonprofit get water purification to more places in need

September 17, 2014 1:59 pm ET

Resin giant PolyOne Corp. is teaming up with WaterStep, a non-profit water purification agency, to help the group assist a greater number of disaster ...    More

Image

ACI expanding in South Carolina

September 17, 2014 12:56 pm ET

Reprocessor and recycler ACI Plastics Inc. is expanding in South Carolina.    More

Image

DuPont investing $100 million for more ethylene copolymer capacity

September 16, 2014 1:51 pm ET

Increased packaging demand is leading materials giant DuPont Co. to spend more than $100 million to increase capacity for ethylene copolymers at its p...    More

Market Reports

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

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook – North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Upcoming Plastics News Events

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

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

More Events