PP prices rise 5 cents

By Frank Esposito
Senior Staff Reporter

Published: August 28, 2014 3:59 pm ET
Updated: August 28, 2014 4:03 pm ET

Related to this story

Topics Materials, Materials Suppliers, Resin Pricing, United States, Mexico, Canada

After a one-month break, volatility has returned to the North American polypropylene resin market, with prices increasing by an average of 5 cents per pound since Aug. 1.

A surge in price for propylene monomer feedstock played a role in the increase. Supplies of propylene have tightened partly as a result of the temporary loss of more than 1 billion pounds of annual propylene capacity after a fire at a Chevron Phillips Chemical Co. plant in Port Arthur, Texas.

Market analyst Scott Newell with Resin Technology Inc. in Fort Worth, Texas, said the five cents for August “is sticking” because of a combination of “stronger derivative demand…and various supply issues on the (propylene) monomer side.”

Regional PP makers also continue to battle with customers for price increases beyond matching increases in monomer. “The topic of margin expansion will continue to surface, especially as we get closer to 2015,” Newell added.

Prior to being flat in July, regional PP prices had fallen for five consecutive months, bringing prices down a total of 7 cents per pound. Factoring in a 5 cent January hike and this new August hike, regional PP prices are up a net of 3 cents per pound for the year.

Through July, North American PP sales were up 1.5 percent to almost 9.6 billion pounds vs. the same period in 2013, according to the American Chemistry Council in Washington. A gain of 18 percent in export sales boosted a rise of about 1 percent for sales into the domestic market.

Sales of PP into the sheet market continued to post strong growth in North America, climbing almost 11 percent to more than 903 million pounds through July, according to ACC. PP sales into injection molded transportation uses grew almost 8 percent to just under 305 million pounds, while seven-month sales to distributors shot up 15 percent to almost 894 million pounds.


Comments

PP prices rise 5 cents

By Frank Esposito
Senior Staff Reporter

Published: August 28, 2014 3:59 pm ET
Updated: August 28, 2014 4:03 pm ET

Post Your Comments


Back to story


More stories

Image

Sabic: Rapid demand growth led to Ultem shortage

December 18, 2014 12:06 pm ET

Sabic Innovative Plastics has been increasing production capacity for its Ultem polyetherimide but it still got caught short by increasing demand for ...    More

Auto supplier M-Tek relocating headquarters

December 18, 2014 3:37 pm ET

M-Tek Inc., a subsidiary of Japanese automotive supplier Kasai Kogyo Co. Ltd., will build a new North American corporate headquarters in Murfreesboro,...    More

Image

Indian auto parts maker set to buy assets in Germany, Mexico

December 18, 2014 10:35 am ET

Indian auto parts maker Samvardhana Motherson Gropup is buying the assets of insolvent German plastics car parts producer Scherer & Trier (S&T).    More

McCann expanding in Ohio

December 17, 2014 11:59 am ET

Compounding firm McCann Plastics will spend $1.2 million on an expansion project that will create 15 new jobs at its plant in Green, Ohio.    More

Image

New extruders, repelletizer to improve production for InterGroup

December 17, 2014 6:00 am ET

InterGroup International Ltd. will install new, larger extruders and repelletizers at all three of its plastic scrap recycling locations in 2015.    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

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 billion 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

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

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events