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

Asahi Kasei breaks ground on Alabama compounding plant

September 29, 2014 5:39 pm ET

Asahi Kasei Plastics North America will be able to solve two problems at once with a new compounding plant in Athens, Ala.    More

Image

Sigma's Packworx center geared at helping customers solve problems

September 29, 2014 3:41 pm ET

Sigma Stretch Film has opened a training center to help customers find the best solution to using the packaging films.    More

Image

EEOC suing movable wall maker Hufcor

September 29, 2014 3:09 pm ET

Movable wall and partition maker Hufcor Inc. is facing a federal lawsuit from the U.S. Equal Employment Opportunity Commission after violating...    More

Image

DuPont shifting Teflon production in China

September 29, 2014 2:35 pm ET

DuPont Co. will spend more than $15 million to improve its fluoropolymer product offerings in China.    More

Image

Early decision on 3-D motion technology goes to National Graphics

September 29, 2014 2:29 pm ET

Even without super powers, technology firm National Graphics Inc. has won a decision in a patent challenge vs. a rival company.    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