Prices for engineering resins are heading higher, a result of improved demand in some markets and production problems, including at a polymer production facility in Mexico.
In the May Polymer Points editorial livestream, senior reporter Frank Esposito also explained the latest changes in the volatile polypropylene and polyethylene markets. He recapped the latest PE increase — up 3 cents per pound in April, which was the second surprisingly successful price hike this year. RECORDING BELOW
“If you look at exports, exports are now about 45 percent of polyethylene production. That takes up a lot of material and that in essence tightens domestic supplies,” Esposito said.
There’s another 3 cent increase on the table for May, but Esposito said some buyer expect prices to drop – perhaps giving back the 3-cent increase they saw in April.
Polypropylene was down 10 cents in April and could drop another 7-8 cents in May.
“This was the much-delayed 10 cent drop in April that pretty much wiped out the 10 cents in increases that had been seen in January, February and March.”
Esposito also gave viewers some insight into pricing changes that have not been reported on Plastics News’ resin pricing chart yet, including increases for nylon, ABS and polycarbonate. Among other factors, he reported that Ineos Styrolution has notified customers of a force majeure declaration for its Altamira, Mexico, plant that makes ABS and ASA resins.
Ineos Styrolution blamed an ongoing severe drought, which has local officials reducing the supply of fresh water to industrial customers.
Esposito and Don Loepp also discussed PVC, PET and polystyrene pricing; recycled polymer pricing; chemical recycling markets and the potential for taxes on virgin resins. The next Polymer Points Live is scheduled for Tuesday, June 18.