PP, PET only commodities up in November

November was a somewhat quiet month for North American commodity resins, with only polypropylene and PET bottle resin posting higher prices.

Regional PP prices ticked up another penny per pound for the month, marking the second straight month that market prices had moved up by that amount. Prices had jumped 7 cents per pound in September as the market reacted to temporary shortages caused by Hurricane Harvey.

North American PP sales grew just over 1 percent in the first 10 months of 2017, according to the American Chemistry Council. Domestic sales grew 2.5 percent in that period but were softened by a 32.5 percent plunge in exports.

North American PET prices moved up a total of 3 cents per pound in October and November, resulting from material tightness and higher feedstock costs. Prices for the material had increased an average of 4 cents per pound in September as Hurricane Harvey affected the availability of PET feedstocks made on the U.S. Gulf Coast.

Regional PET prices now have increased for six consecutive months. The bankruptcy filing of PET maker M&G Polymers led the firm to stop production at plants in Altamira, Mexico, and Apple Grove, W.Va., reducing the availability of resin in the region and providing some justification for higher prices.

Imports might help North American processors in the short term. But on Nov. 8, U.S. trade officials voted to continue to investigate a request by four major North American PET makers to place antidumping duties on PET imports from Brazil, Indonesia, South Korea, Pakistan and Taiwan. A decision is expected by early March.

Plastics News also recently reported higher prices for nylon 6 and 6/6 resins in North America. Higher feedstock costs and strong demand from the automotive market sent nylon 6 prices up an average of 6 cents per pound and nylon 6/6 prices up an average of 8 cents per pound since Sept. 1, according to market sources. North American nylon 6 and 6/6 prices already had surged a total of 18 cents this year.

Regional prices for polyethylene, polystyrene and PVC all were flat for November, after each of those materials had absorbed price increases of 3 cents per pound in October. The 3-cent October PE hike came after prices jumped a total of 7 cents in September and October. Tight PE supplies in the post-hurricane PE market helped price increases take hold.

U.S./Canadian PE sales were mixed in the first 10 months of 2017, according to the American Chemistry Council. Sales of high density PE were down almost 4 percent as a domestic sales gain of 3 percent was wiped out by a drop of almost 27 percent in exports.

Low density PE sales ticked up almost 2 percent in those 10 months, with a domestic sales drop of almost 1 percent negated by an export sales gain of 12 percent. In linear low density PE, regional sales were up 1.5 percent as domestic growth of 4 percent was lowered by a 7 percent drop in exports.

The 3-cent PS hike for October marked the second consecutive month that prices had climbed by that amount. Some production of benzene, which is used to make styrene monomer, had been affected by Harvey.

North American PS sales fell more than 1 percent in the first 10 months of 2017. A domestic sales loss of more than 1 percent was softened a bit by a boost of 8.5 percent in exports.

After being flat for six consecutive months, PVC prices moved up 3 cents in October as suppliers were able to get most of a 5-cent hike they'd been seeking. Market sources said lower export prices prevented the full 5 cents from taking hold.

U.S./Canadian PVC sales managed growth of just over 2 percent in the first 10 months of 2017. Domestic sales growth of more than 4 percent was weakened by an export sales loss of almost 3 percent.

In broader feedstocks, West Texas Intermediate crude oil began November around $54.50 per barrel but ended near $58.25 for an increase of almost 7 percent. Regional natural gas prices were around $3 at the start of the month and rose only slightly to $3.05 by the end of November for an increase of less than 2 percent.