Skip to main content
Sister Publication Links
  • Sustainable Plastics
  • Rubber News
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Processor News
    • Suppliers
    • More News
    • Digital Edition
    • End Markets
    • Special Reports
    • Newsletters
    • Resin pricing news
    • Videos
    • Injection Molding
    • Blow Molding
    • Film & Sheet
    • Pipe/Profile/Tubing
    • Rotomolding
    • Thermoforming
    • Recycling
    • Machinery
    • Materials
    • Molds/Tooling
    • Product news
    • Design
    • K Show
    • Mergers & Acquisitions
    • Sustainability
    • Public Policy
    • Material Insights Videos
    • Numbers that Matter
    • Automotive
    • Packaging
    • Medical
    • Consumer Products
    • Construction
    • Processor of the Year
    • Best Places to Work
    • Women Breaking the Mold
    • Rising Stars
    • Diversity
    • Most Interesting Social Media Accounts in Plastics
  • Opinion
    • The Plastics Blog
    • Kickstart
    • One Good Resin
    • Pellets and Politics
    • All Things Data
    • Viewpoint
    • From Pillar to Post
    • Perspective
    • Mailbag
    • Fake Plastic Trees
  • Shop Floor
    • Blending
    • Compounding
    • Drying
    • Injection Molding
    • Purging
    • Robotics
    • Size Reduction
    • Structural Foam
    • Tooling
    • Training
  • Events
    • K Show Livestream
    • Plastics News Events
    • Industry Events
    • Injection Molding & Design Expo
    • Livestreams/Webinars
    • Editorial Livestreams
    • Ask the Expert
    • Plastics News Events Library
    • Processor of the Year submissions
    • Plastics News Executive Forum
    • Injection Molding & Design Expo
    • Plastics News Caps & Closures
    • Women Breaking the Mold Networking Forum
    • Plastics in Automotive
    • PN Live: Mergers and Acquisitions
    • Polymer Points Live
    • Numbers that Matter Live
    • Plastics in Politics Live
    • Sustainable Plastics Live
    • Plastics Caps & Closures Library
    • Plastics in Healthcare Library
    • Women Breaking the Mold Networking Forum Library
  • Rankings & Data
    • Injection Molders
    • Blow Molders
    • Film Sheet
    • Thermoformers
    • Pipe Profile Tubing
    • Rotomolders
    • Mold/Toolmakers
    • LSR Processors
    • Recyclers
    • Compounders - List
    • Association - List
    • Plastic Lumber - List
    • All
  • Directory
  • Resin Prices
    • Commodity TPs
    • High Temp TPs
    • ETPs
    • Thermosets
    • Recycled Plastics
    • Historic Commodity Thermoplastics
    • Historic High Temp Thermoplastics
    • Historic Engineering Thermoplastics
    • Historic Thermosets
    • Historic Recycled Plastics
  • Custom
    • Sponsored Content
    • LS Mtron Sponsored Content
    • Conair Sponsored Content
    • KraussMaffei Sponsored Content
    • ENGEL Sponsored Content
    • White Papers
    • Classifieds
    • Place an Ad
    • Sign up for Early Classified
MENU
Breadcrumb
  1. Home
  2. News
April 29, 2002 02:00 AM

PP prices climbing; PC, nylon still sliding

Frank Esposito
Senior Staff Reporter
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print

    Polypropylene makers have been able to push through additional price increases since April 1, while tough conditions continued in the first quarter for polycarbonate and nylon resin makers.

    PP prices climbed an average of 3 cents per pound since the start of the month and now are up an average of 5 cents per pound for the year. By comparison, prices fell an average of 7 cents per pound in 2001, according to the Plastics News resin pricing chart.

    There appears to be little supply-and-demand dynamic behind the moves. Instead, PP makers have their backs to the wall and are not budging from the announced moves, said several buyers contacted recently.

    ``[PP] producers have got their swagger back,'' a Midwestern PP buyer said. ``So far, they're not backing down.''

    A Chicago-based PP buyer reported increased demand for the material in both rigid and flexible packaging, including containers for food and dairy products.

    ``[PP] is still a low-cost resin that a lot of designers reach for first,'' the buyer said.

    British Petroleum plc's decision to shutter permanently about a billion pounds of capacity at its Texas plants could have a short-term effect on the market, even if it is only a psychological one, industry contacts said. The firm had idled a 450 million-pound-capacity line in Alvin, Texas, late last year and will close a 575 million-pound site in Baytown, Texas, in June.

    Combined, BP, Basell Polyolefins and Huntsman Corp. have idled about 1.6 billion pounds of capacity since early 2001. But BP's latest move will be offset by Phillips Petroleum Corp.'s launch of a 700 million-pound plant in Linden, N.J., by mid-2002.

    ``We're seeing demand pick up,'' said Craig Blizzard, marketing director for PP maker Basell Polyolefins of Wilmington, Del. ``At the low-price end of the market, there's increased reluctance on the part of our competitors to supply product.

    ``There's a lot of scrambling going on as people recognize that the [PP] price is moving. We just heard from a customer who we hadn't heard from in three years who was looking for material.''

    The North American PP market saw ``low-single-digit'' growth in the first quarter, as sales into automotive uses remained solid, although sales into fibers remained ``a little weak,'' said Blizzard.

    Most major PP makers have announced further price increases of 3 cents per pound for May 1. Atofina Petrochemicals Inc. and Equistar Chemicals LP originally set the date as April 1, but may move their dates back to match their competitors.

    In PC, prices fell an average of 10 cents per pound in the first quarter as demand continued to shrink, said several recently contacted buyers. Decreased capital spending in the information technology and telecommunications sectors played a major role in the pricing and demand slump, industry contacts said.

    The drop translates to an average of 14 cents per pound on general-purpose, injection molding grades of PC on Plastics News' resin pricing chart. Prices already had fallen an average of 8 percent since early 2001.

    Average selling prices for PC/ABS blends also have been affected by the slowdown and have dropped an average of 8 percent, or 14 cents per pound, since early 2001.

    Market leader GE Plastics of Pittsfield, Mass., has attempted to reverse this slide by announcing 9 cent-per-pound increases on PC and PC/ABS, as well as 8 cents a pound on ABS and its Noryl-brand polyphenylene oxide, and 3 cents a pound on its Valox-brand polybutylene terephthalate.

    Competitors Bayer Corp. and Dow Chemical Co. have announced similar price increases for PC. Higher prices for benzene feedstocks are playing a role in the increase attempts, industry contacts said.

    ``There's been a lack of demand [for PC] and producers aren't used to it, since they had been selling everything they made,'' said Ben Smith, an industry analyst with Chemical Market Associates Inc. in Houston.

    The optical media market, which accounts for 13 percent of U.S. PC demand, also is at something of a standstill. Growth rates for recordable compact discs are up, but audio CD sales remain depressed, partially because of the proliferation of music downloading via the Internet, Smith said.

    Digital video discs are offering a ray of hope, having equaled videotape sales for the first time in December. Low-price DVD players are giving the format a major boost, Smith added.

    U.S. PC operating rates should settle at 75-80 percent this year after being around 85 percent last year, said Smith. Previously, those rates had been above 90 percent every year from 1992-2000.

    Nylon prices continued to plunge in the first quarter as automakers sold off inventory amid slowing growth rates. Automotive uses account for roughly 40 percent of all nylon resin sales.

    Average selling prices for nylon 6 and 6/6 each fell an average of 10 percent. In nylon 6, that equals a drop of about 12 cents per pound, while in 6/6, the average drop was 13 cents per pound.

    Prices for nylon 6 had dropped 12 percent on average in 2001. Nylon 6/6 prices slipped an average of 13 percent in the same period.

    The 2002 market has bottomed out and is on the mend, said Mike Warner, president of nylon maker and compounder Custom Resins Inc. in Wayne, N.J.

    ``Things are definitely firming up,'' Warner said. ``A number of our markets have been stronger this year.''

    ``The automotive market has been stronger than we thought it would be, even if car builds are off a little bit,'' he added. ``Nonautomotive markets like extrusion also are looking good.''

    Warner estimated nylon plant operating rates currently are around 80 percent. Custom Resins has no plans to add resin capacity, but will add a new twin-screw compounding line and debottleneck another at its Henderson, Ky., plant later this year.

    North American nylon sales were down 15 percent in 2001, according to the American Plastics Council in Arlington, Va. Sales volume dropped from almost 1.4 billion pounds to less than 1.2 billion. Domestic production receded from almost 1.3 billion pounds to just over 1 billion.

    Plastics News also is adjusting down prices of engineering thermoplastic grades of ABS used in injection molding by an average of 8 percent. The move is designed to reflect decreased demand for those high-end materials since early 2001.

    RECOMMENDED FOR YOU
    Thermoformer Genpak closing Ohio facility, cutting 67 jobs
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]

    Most Popular
    1
    Asahi Kasei settles Michigan PFAS lawsuit, agrees to clean up pollution
    2
    Numbers That Matter Live January 2023: Expect short-term pain, strong rebound in 2024
    3
    Berry, Coca-Cola launch tethered caps in EU markets
    4
    Berry sees growing health care demand in India; new plant to open soon
    5
    Top-dollar deals, repeat buyers highlight 2022 M&A
    SIGN UP FOR OUR FREE NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Plastics News delivered straight to your inbox, free of charge.

    Subscribe today

    Subscribe to Plastics News

    Subscribe now
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter
    • Instagram

    Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI 48207-2997

    Customer Service:
    877-320-1723

    Resources
    • About
    • Staff
    • Editorial Calendar
    • Media Kit
    • Data Store
    • Digital Edition
    • Custom Content
    • People
    • Contact
    • Careers
    • Sitemap
    Related Crain Publications
    • Sustainable Plastics
    • Rubber News
    • Tire Business
    • Urethanes Technology
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Processor News
        • Injection Molding
        • Blow Molding
        • Film & Sheet
        • Pipe/Profile/Tubing
        • Rotomolding
        • Thermoforming
        • Recycling
      • Suppliers
        • Machinery
        • Materials
        • Molds/Tooling
        • Product news
        • Design
      • More News
        • K Show
        • Mergers & Acquisitions
        • Sustainability
        • Public Policy
        • Material Insights Videos
        • Numbers that Matter
      • Digital Edition
      • End Markets
        • Automotive
        • Packaging
        • Medical
        • Consumer Products
        • Construction
      • Special Reports
        • Processor of the Year
        • Best Places to Work
        • Women Breaking the Mold
        • Rising Stars
        • Diversity
        • Most Interesting Social Media Accounts in Plastics
      • Newsletters
      • Resin pricing news
      • Videos
    • Opinion
      • The Plastics Blog
      • Kickstart
      • One Good Resin
      • Pellets and Politics
      • All Things Data
      • Viewpoint
      • From Pillar to Post
      • Perspective
      • Mailbag
      • Fake Plastic Trees
    • Shop Floor
      • Blending
      • Compounding
      • Drying
      • Injection Molding
      • Purging
      • Robotics
      • Size Reduction
      • Structural Foam
      • Tooling
      • Training
    • Events
      • K Show Livestream
      • Plastics News Events
        • Plastics News Executive Forum
        • Injection Molding & Design Expo
        • Plastics News Caps & Closures
        • Women Breaking the Mold Networking Forum
        • Plastics in Automotive
      • Industry Events
      • Injection Molding & Design Expo
      • Livestreams/Webinars
        • PN Live: Mergers and Acquisitions
      • Editorial Livestreams
        • Polymer Points Live
        • Numbers that Matter Live
        • Plastics in Politics Live
        • Sustainable Plastics Live
      • Ask the Expert
      • Plastics News Events Library
        • Plastics Caps & Closures Library
        • Plastics in Healthcare Library
        • Women Breaking the Mold Networking Forum Library
      • Processor of the Year submissions
    • Rankings & Data
      • Injection Molders
      • Blow Molders
      • Film Sheet
      • Thermoformers
      • Pipe Profile Tubing
      • Rotomolders
      • Mold/Toolmakers
      • LSR Processors
      • Recyclers
      • Compounders - List
      • Association - List
      • Plastic Lumber - List
      • All
    • Directory
    • Resin Prices
      • Commodity TPs
        • Historic Commodity Thermoplastics
      • High Temp TPs
        • Historic High Temp Thermoplastics
      • ETPs
        • Historic Engineering Thermoplastics
      • Thermosets
        • Historic Thermosets
      • Recycled Plastics
        • Historic Recycled Plastics
    • Custom
      • Sponsored Content
      • LS Mtron Sponsored Content
      • Conair Sponsored Content
      • KraussMaffei Sponsored Content
      • ENGEL Sponsored Content
      • White Papers
      • Classifieds
        • Place an Ad
        • Sign up for Early Classified