PVC prices rise 3 cents, PET drops a penny

By Frank Esposito
Senior Staff Reporter

Published: April 10, 2014 1:56 pm ET
Updated: April 10, 2014 2:01 pm ET

Related to this story

Topics Materials, Materials Suppliers, Resin Pricing, United States

North American prices for PVC and PET resins traveled in different directions in March, with PVC rising by an average of 3 cents per pound and PET sliding by a penny.

A 3-cent price hike for grades of suspension PVC is becoming standard issue for that market. It’s the third straight month that such a hike has taken hold. This sequence isn’t sitting well with PVC buyers in the region.

“Business is down, so taking the full three will be hard on us,” a PVC buyer in the southern U.S. told Plastics News. “But with resin still somewhat tight, we may have to take it.”

PVC makers in the region have countered that the increases are warranted because of supply tightness caused by recent disruptions in production. OxyVinyls and Westlake Chemicals Corp. had been on control distribution with customers because of limited ethylene supplies. OxyVinyls also has had production challenges because of cold weather.

Prior to this string of 3-cent increases, regional PVC prices had been flat since falling a penny per pound in October. For the first two months of 2014, U.S./Canadian PVC sales were down almost 4 percent, according to the American Chemistry Council in Washington, as rough winter weather slowed construction, even in parts of the U.S. that normally do not experience harsh conditions.

Export sales fell 13 percent in that period vs. the same two months in 2013, and domestic sales rose less than 1 percent. Markets for extruded windows and doors and wire and cable provided bright spots for domestic PVC sales for the period, with PVC sales into extruded windows and doors up more than 8 percent and into wire and cable up almost 6 percent, according to ACC.

U.S. housing starts for February checked in at an annual rate of 907,000, according to the National Association of Home Builders in Washington. That’s more than 6 percent below the market’s pace in February 2013. Construction activity accounts for about 60 percent of domestic PVC consumption.

In PET, bottle resin prices fell for the third straight month, as a result of lower feedstock prices and weak beverage demand — particularly in carbonated soft drinks and bottled water — again resulting somewhat from the harsh winter.

Regional PET prices had fallen a penny in January and 2 cents in February before the 1-cent March drop. That 4 cents of total volatility has the market on pace to surpass the 12 cents of volatility that it showed for all of 2013. The 2013 total, however, was low by historical standards.


Comments

PVC prices rise 3 cents, PET drops a penny

By Frank Esposito
Senior Staff Reporter

Published: April 10, 2014 1:56 pm ET
Updated: April 10, 2014 2:01 pm ET

Post Your Comments


Back to story


More stories

Image

Genova Plastics to spend $4.9 million on new Kentucky plant

October 1, 2014 4:35 pm ET

Vinyl plumbing and building materials maker Genova Plastics of Davison, Mich., will invest $4.9 million to renovate a factory in Paducah, Ky., as...    More

Image

Global Plastics Summit puts PE prices in the spotlight

October 1, 2014 3:17 pm ET

Product manufacturers may start to shift away from polyethylene because of high prices, according to two major plastics processors.    More

Image

Nucleation offers solution to shrinkage in HDPE closures

October 1, 2014 1:57 pm ET

For caps producers, nucleation can provide a practical solution to eliminate shrinkage variations in high density polyethylene beverage closures....    More

Image

US production of premium golf balls gives Bridgestone an edge

October 1, 2014 1:12 pm ET

Bridgestone Golf Inc.'s recent decision to produce all of its premium golf balls at its Covington, Ga., facility makes for not just a good...    More

Image

Dow loses appeal in price fixing case

October 1, 2014 11:10 am ET

The Reuters press agency reports that a federal appeals court in Denver has rejected Dow Chemical Co.'s attempt to overturn a $1.06 billion fine impos...    More

Market Reports

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 industry analysis highlights macro industry trends and micro trends faced by companies that do business in Mexico. The report also provides key industry statistics and forecasts to anticipate future industry expansion.

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

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

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