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

Optical disc molder OEM getting into micromolding with acquisition of CDA

August 29, 2014 11:24 am ET

Optical disc replicator and molder Optical Experts Manufacturing Inc. of Charlotte, N.C., has expanded its core business and entered new high...    More

Image

Baxter investing $300 million to expand dialyzers production in Alabama

August 29, 2014 12:53 pm ET

Baxter International, Inc. is expanding its Opelika, Ala. manufacturing location to boost production of dialyzers, a key component of hemodialysis...    More

Image

EPA fines RI polymer company

August 29, 2014 1:20 pm ET

A Rhode Island polymer manufacturer has reached a $60,000 settlement with the U.S. Environmental Protection Agency (EPA) for violating federal clean...    More

Image

Updating a travel icon for the professional millennial

August 29, 2014 11:44 am ET

As part of a drive to expand its customer base to include more millennials, Airstream Inc. turned to the Columbus College of Art & Design's...    More

Image

American Starlinger-Sahm begins work on new US headquarters

August 29, 2014 10:18 am ET

American Starlinger-Sahm Inc., which sells equipment for woven plastic bag production, PET recycling equipment, sheet extrusion and laminating lines a...    More

Market Reports

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

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

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

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

More Events