Kickstart: A 'last hurrah' for high PP prices?

I don't want to jinx anything here, but it looks like polypropylene resin prices are finally about to ease up.

As Frank Esposito writes in the latest pricing news, current PP prices in North America are down average of 7 cents per pound after seeing a 16-cent rise earlier this year and a massive 61-cent climb from late 2020 into 2021, prompted by shutdowns at resin plants in Texas from an ice storm.

There have been decreases to PP prices since then, but one industry executive says new PP capacity coming online this year may finally signal an overall easing, combined with lower polymer-grade propylene prices.

"Barring weather events, this is the last hurrah," one resin distribution executive told Frank. "I doubt [PP makers] will get another increase in 2022. We get to see if the price down is a slow glide or just a quick falloff."

Expect more details from Frank in this month's Polymer Points Live webcast June 16, free for PN subscribers.

File this under the heading of "solutions for first-world problems." Bag maker Novolex has unveiled a line of produce bags manufactured by its Hilex business that are easy to open.

This may not be a big thing, but for anyone who has struggled to open a fresh produce bag (especially noticable when you're masked and can't just lick your fingertip), the RollStar EZ Open bags use a proprietary blend so sides of the bag won't stick together.

"As shoppers, we've all struggled to open produce bags, rubbing the end of the bag between our thumb and fingers, hoping the two sides will separate and the bag will open," Harry Wilfong, manager of technology – flexible poly for Novolex, said in a news release.

Hartsville, S.C.-based Novolex is showing the bags at the International Dairy Deli Bakery show in Atlanta, June 5-7.

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As yet another massive electric vehicle production plan is announced for the U.S. — this time Ford Motor Co., pledging to spend $3.7 billion — auto insiders say that all of the rapid changes also will lead to upheaval that will drive some companies out while new competitors enter the industry.

"No doubt about it, we're going to see very large consolidation," Ford Motor Co. CEO Jim Farley said at the Bernstein Strategic Decisions Conference on June 1. "Big changes."

That means some traditional auto manufacturers may be forced out of business along with suppliers, EV companies trying to force their way into the marketplace and car dealers. Meanwhile, Chinese automakers and suppliers already producing parts and cars could have an inside track for success, while plastics suppliers in the U.S. work to prepare for changes.

"There's a shakeout coming," Farley said.