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
February 01, 2018 01:00 AM

PP jumps 9 cents, PE slides by 3

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

    North American polypropylene resin buyers have been hit with a big price hike to kick off 2018, while buyers of polyethylene resin have seen a bit of pricing relief.

    Average selling prices for PP in the region jumped 9 cents per pound in January, mainly resulting from tightness in propylene monomer feedstock and, in some cases, for PP resin itself. The average PE price decrease for January was 3 cents per pound, due in part to lower demand.

    North American PP prices now have increased for seven consecutive months, with those increases totaling 19.5 cents per pound. Higher domestic demand combined with feedstock and resin shortages from Hurricane Harvey have played a role in these price hikes.

    The January price hike was tied to unseasonably cold weather in the Houston area, where large amounts of capacity for PP resin and feedstock are located. A PP line operated by Braskem Americas in La Porte, Texas, had an unplanned shutdown on Jan. 17 because of a frozen boiler transmitter.

    Another PP line operated by LyondellBasell Industries in Bayport, Texas, also was down on that same date because of a power issue. Minor production issues were reported at ethylene or propylene units operated in the region by Flint Hills Resources, Huntsman Corp., Chevron Phillips Chemical Co. and Enterprise Products.

    DowDuPont Inc. also reported a process unit upset at its massive 2.3 billion pound capacity ethylene/propylene unit in Freeport, Texas. Temperatures dipped into the 20s, creating icy conditions and leading to some power outages. The cold snap marked the first time that Houston had seen temperatures in the 20s in January since 1996.

    The 9-cent increase "almost entirely was cost push," according to Scott Newell, a market analyst with Resin Technology Inc. in Fort Worth, Texas. "It was all driven by polymer-grade propylene. There was no [profit] margin expansion."

    Improved operating conditions could lead to some of the 9 cents coming off in February, he added.

    A major PP buyer on the U.S. East Coast said that supplies were tight and that his injection molding firm was "having a hard time" in sourcing rail cars of resin. The firm has been able to meet its needs, he said, but now faces a challenge in passing the increase on to its own customers.

    North American PP sales essentially were flat in 2017, with domestic growth of almost 3 percent negated by a drop of more than 50 percent in export sales, according to the American Chemistry Council.

    The 3-cent PE price drop for January came after prices for those materials had been flat in November and December. Prior to that two-month period, prices had climbed a total of 7 cents per pound between May and October.

    January's 3-cent decline was tied into lower demand and came after there was some confusion between actual market price declines and non-market adjustments received by some buyers, according to RTI market analyst Mike Burns.

    U.S./Canadian PE sales were mixed in 2017. Sales of high density and low density PE both were down for the year. HDPE in the region saw sales slump almost 4 percent, as domestic sales growth of almost 4 percent was overcome by a drop of almost 28 percent in exports.

    For LDPE, sales dipped almost 1 percent, but for opposite reasons than HDPE. Domestic sales of LDPE slipped more than 2 percent, but the overall loss was softened by a gain of more than 4 percent in export sales.

    The U.S./Canadian LLDPE market fared better in 2017, with sales growth of more than 1 percent. Domestic sales growth of almost 4 percent was weakened by a drop of more than 6 percent in exports.

    North American PE makers now are seeking price increases of 4 cents per pound effective Feb. 1.

    Price correction for PET

    Plastics News is showing on its resin pricing chart a downward non-market price correction of 30 cents per pound for PET bottle resin.

    The correction is designed to reflect more accurate selling prices for the North American market and to incorporate price rebates seen by buyers in recent years. It does not reflect any recent pricing activity.

    On the historical pricing chart, we are showing a decrease of 5 cents as of Dec. 31 each year, starting in 2013, to reflect the changes.

    For similar reasons, PN plans to show downward non-market adjustments of 20 cents per pound for all grades of PE and of 15 cents per pound for solid polystyrene in next week's issue. The PN resin pricing chart is intended to show general market activity and is not designed to be used as a single-source index for price-setting.

    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
    Plastics industry social media accounts worth following
    2
    Gund buys Vanderveer Industrial Plastics
    3
    Recycling plant for laminated packaging launches in Mexico
    4
    PVC, PS resin prices take opposite paths in May
    5
    Target, Walmart cut from bag drop-off site directory following report
    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