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
    • 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
      • 2023 winners
    • 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
    • Bioplastics Live
    • 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
    • Resin Prices Overview
    • Commodity Thermoplastics
    • High Temperature Thermoplastics
    • Engineering Thermoplastics
    • Recycled Plastics
    • Thermosets
  • 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
January 29, 2015 01:00 AM

Resin prices continuing to tumble

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

    The ongoing slide in crude oil prices is taking commodity resin prices down as well.

    North American prices for all grades of polyethylene, polypropylene, suspension PVC and solid polystyrene each dropped in January. Prices for crude oil have fallen more than 50 percent since mid-2014, affecting prices for feedstocks used to make these resins. West Texas Intermediate crude was trading near $44.50 per barrel on Jan. 29 — its lowest price since early 2009.

    For January, regional PE prices fell an average of 4 cents per pound, while PVC dipped an average of 2 cents per pound. Price decreases for PP and PS were far more extreme, with PP plummeting 10 cents per pound and PS plunging 9 cents per pound.

    The PE decline is the third consecutive monthly drop for that material after the market had not seen a single price decrease in two years. Prices had fallen a total of 7 cents in November and December. The oil decline has affected prices for ethylene feedstock used to make PE. The price of oil sets global prices for the material, even though natural gas is used to make most ethylene used in North American PE production.

    Some major North American PE buyers were pushing for a 5-cent price drop in January, but in most cases producers were able to limit the decrease to 4 cents, according to market sources contacted by Plastics News.

    Regional PE demand hasn't done much to offset these price reductions. Through November, U.S./Canadian PE demand was down almost 1 percent in 2014, with sales of low density PE up less than 1 percent and regional linear low density PE sales flat vs. the same period in 2013.

    PE market analyst Mike Burns with Resin Technology Inc. in Fort Worth, Texas, said that given the amount of feedstock price decline, larger PE resin price drops would be expected.

    “Film processors [in North America] have begun to be challenged from almost every region of the world with lower finished goods price requests,” he added.

    PVC tied to ethylene

    PVC prices also are affected by ethylene feedstock, resulting in the 2-cent January drop. That move came after prices had declined by a total of 5 cents in November and December. Demand for the material could be picking up as construction companies build inventories of pipe and other PVC products in advance of the spring building season.

    There's plenty of room for PVC demand improvement in North America after U.S./Canadian sales of the material slipped almost 2 percent in 2014, according to the American Chemistry Council. A gain of almost 3 percent in domestic sales was wiped out by a plunge of more than 10 percent of sales into the export market.

    Bright spots for the domestic PVC market in 2014 came in sales to compounders, which skyrocketed 42 percent, and into siding and related uses, which were up more than 4 percent.

    The 10-cent PP price drop in January followed an identical decline in December. For better or worse, PP buyers might be accustomed to double-digit price swings, since they've now seen 13 such moves since May 2010, according to the Plastics News resin pricing chart.

    January prices for polymer-grade propylene monomer feedstock actually fell 12 cents per pound, but PP suppliers were able to limit the resin drop to 10 cents, which improved their own margins, sources said.

    Short-term PP supplies in the region could be affected by force majeure supply limits at a resin plant operated by Ineos Group in Alvin, Texas, and by similar conditions at a plant operated by Phillips 66 in Linden, N.J. The Linden plant had been scheduled for a 30-day maintenance turnaround beginning March 1, but operational issues caused Phillips 66 to close the plant earlier than expected, officials said in a recent letter to customers.

    RTI PP market analyst Scott Newell said that propylene markets currently are stable, which could lead to flat prices for PP resin in February.

    North American PP demand also was unimpressive in 2014, finishing essentially flat with 2013. Export sales growth of 5.5 percent was neutralized by a decline of less than 1 percent in the domestic market. Regional sales of PP into the sheet market enjoyed a strong year in 2014, increasing by almost 8 percent.

    The 9-cent drop seen in the regional PS market had been announced by producer Americas Styrenics on Dec. 31. Looking at the PS feedstock situation, that drop could have been worse. Prices for benzene, a key feedstock used to make styrene monomer, swooned 35 percent in January to close at $2.20 per gallon. More benzene price drops might be seen in February, sources said.

    The January PS decline was the fifth straight monthly drop, for a total of 21 cents. Regional PS demand through November was down 3 percent, returning the market to a loss after it had notched its first growth year in a decade in 2013.

    RECOMMENDED FOR YOU
    Numbers That Matter Live — sign up for the next live
    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
    Target, Walmart cut from bag drop-off site directory following report
    2
    Plastics industry social media accounts worth following
    3
    PVC, PS resin prices take opposite paths in May
    4
    Resin Prices
    5
    Recycling plant for laminated packaging launches in Mexico
    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
          • 2023 winners
        • Women Breaking the Mold
        • Rising Stars
        • Diversity
        • Most Interesting Social Media Accounts in Plastics
      • Newsletters
      • 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
        • Bioplastics Live
        • 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
      • Resin Prices Overview
      • Commodity Thermoplastics
      • High Temperature Thermoplastics
      • Engineering Thermoplastics
      • Recycled Plastics
      • Thermosets
    • 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