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

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

Investment firm buys Ontario cap molder

October 23, 2014 2:01 pm ET

A company whose varied interests include food and refrigerated transportation businesses is now moving into plastic caps.    More

Image

FTC warns bag makers to take care before making biodegradeability claims

October 23, 2014 12:30 pm ET

Makers of oxodegradable or oxo-biodegradable plastic bags should consider themselves on notice, according to the U.S. Federal Trade Commission.    More

Image

Westlake adding ethylene capacity in Louisiana

October 23, 2014 9:54 pm ET

Westlake Chemical Corp. will add 250 million pounds of annual ethane-based ethylene capacity as part of a $330 million expansion project in Lake...    More

Image

PolyOne increases quarterly profits despite falling sales

October 23, 2014 4:55 pm ET

North American compounding leader PolyOne Corp. saw its third-quarter profit increase, even as sales fell vs. the year-ago period.    More

Image

Toyoda Gosei's growth strategy places a big focus on North America

October 23, 2014 1:21 pm ET

Sometimes, knowing your weaknesses is just as important as knowing your strengths. And if 2014 is any indication, automotive supplier Toyoda Gosei Co....    More

Market Reports

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 million dollar 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

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

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