Major commodity resins polyethylene and polypropylene saw prices fall in North America in June, while regional prices for PVC resin made a surprising upward move.
North American prices for all grades of high, low and linear low density PE declined by an average of 3 cents per pound in June. Prices had been flat in May after suppliers pushed through a 3 cent hike in April. That hike was half of a 6 cent increase they had been seeking.
Mike Burns, PE market analyst with Resin Technology Inc. in Fort Worth, Texas, said that global PE capacity outpaced global demand in June. He added that prices for off-grade and export PE "are at a 10-year low."
In the regional PP market, prices fell 4 cents in June, effectively erasing a 4 cent increase in May. The June decrease followed a similar pricing trend for polymer-grade propylene feedstock.
Regional PP prices had been flat in April after five straight monthly declines lowered prices by a total of 24.5 cents.