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, Resin Pricing, United States, Materials Suppliers

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

New medical firm buys Clairson Plastics

September 19, 2014 4:33 pm ET

Custom injection molder Clairson Plastics is being sold to a new start-up that plans to dive into the medical market with a new dialyzer, a key...    More

Image

Dunkin' Donuts looking at PP to replace foam cups

September 19, 2014 3:22 pm ET

Dunkin' Donuts is testing a new polypropylene coffee cup that the company believes could help boost recycling.    More

Image

Plasan investing in capacity, jobs to supply auto market with carbon fiber

September 19, 2014 3:05 pm ET

Growth in the emerging automotive market for carbon-fiber composites has spurred a $29 million investment in a Walker, Mich., factory    More

Image

Hong Kong's TK eyes expansion, may buy Nypro Tool operation

September 19, 2014 2:49 pm ET

Hong Kong-based mold maker and plastics processor TK Group (Holdings) Ltd. said it's reached a tentative agreement to buy a tooling factory in...    More

Exo-s buys injection and blow molder in Mexico, expands footprint

September 19, 2014 2:15 pm ET

Custom molder Exo-s Inc. has bought an injection and blow molding operation in San Juan del Rio, Querétaro, Mexico.    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