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
    • Resin pricing news
    • 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
    • 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
    • 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
    • Commodity TPs
    • High Temp TPs
    • ETPs
    • Thermosets
    • Recycled Plastics
    • Historic Commodity Thermoplastics
    • Historic High Temp Thermoplastics
    • Historic Engineering Thermoplastics
    • Historic Thermosets
    • Historic Recycled Plastics
  • 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
March 31, 2022 04:39 PM

Resin prices on the rise

Frank Esposito
Senior Staff Reporter
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    resin fakuma_i.jpg
    Caroline Seidel

    Higher feedstock and energy costs have sent North American prices for polyethylene, polypropylene and polystyrene resins up since March 1.

    Regional PE and PS prices each are up an average of 4 cents per pound in that time frame, while PP prices are up an average of 10 cents.

    The ongoing Ukraine crisis has sent global oil prices up since Russia invaded that nation Feb. 24. West Texas intermediate crude oil prices closed around $107 per barrel March 30, up about 16 percent since Feb. 24. Prices had been above $120 earlier in the month.

    That's had an impact on gasoline prices, as well as on prices for natural gas feedstock. Natural gas prices were up about 22 percent between Feb. 24 and March 30.

    The 4-cent PE hike in March came after prices had been flat for two consecutive months. Regional PE prices had dropped a total of 15 cents in the last three months of 2021.

    PE buyers had resisted the 4-cent move before it pushed through in March. Even though feedstock prices are higher and demand is strong, supply chain challenges have prevented North American PE makers from exporting as much PE as they want to.

    "There are warehouses full of [PE] resin in Houston," one market watcher told Plastics News. "Rail cars are seeing long turnaround times and there aren't a lot of shipping containers. If this keeps up, [PE] producers are going to have to cut production."

    One resin distribution executive told PN that although some specialty PE grades are in tight supply, most commodity grades "are balanced." Another distribution executive agreed that commodity PE is balanced, but added that the supply chain "is backed up because [producers] can't get resin out of the country."

    The export market has taken on added importance for North American PE makers, as much of the new capacity added in the last decade to make use of shale gas feedstock has been aimed at export markets. PE makers now are working on increases of 5-6 cents for April.

    The 10-cent March hike on PP matched a similar increase in price for polymer-grade propylene (PGP) monomer. Prices climbed for that material in part because some propylene in the region is a by-product of gasoline refining.

    PP prices were up 6 cents in February after dropping 3 cents in January and climbing a total of 40 cents in the last four months of 2021. Spot prices for PGP had been up as much as 15 cents earlier in March.

    North American PP supplies will be boosted in 2022 when Inter Pipeline Ltd. and ExxonMobil Chemical add roughly 2 billion pounds of capacity at separate locations. But in the near term, North American PP supplies could be tightened by several production issues.

    LyondellBasell Industries announced force majeure supply limits on 32 PP grades made in Lake Charles, La., because of a gearbox failure. Production at Braskem SA’s PP plant in La Porte, Texas, was also affected by scheduled maintenance, a spokesperson said.

    Sources added that two PP units operated by Ineos Group also are down. The firm's Chocolate Bayou unit in Alvin, Texas, is down for a maintenance turnaround, while its unit in Carson, Calif., is down because of an electrical failure, sources said.

    In PS, prices in March rose an average of 4 cents, following higher prices for benzene, which is used to make styrene monomer. Regional PS prices had been up 5 cents in February after being flat for five consecutive months.

    Benzene prices for March closed at $3.78 per gallon, up almost 7 percent vs. February. One distribution executive told PN that lower production from PS maker Americas Styrenics and an inability to source lower-priced imported PS could send North American PS prices up by as much as 7 cents in April.

    Related Article
    LyondellBasell limiting supply of PP from Louisiana
    RECOMMENDED FOR YOU
    Pipe extruder fined for child labor law violation
    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
    PepsiCo on a ‘multiyear journey' toward bioplastics
    2
    Solar cell film producer investing $147M in Georgia
    3
    Michigan injection molder doubling space to support growth
    4
    Biden sets US goal to replace 90% of plastics with biomaterials
    5
    Plastics recycling must do better by consumers to succeed, professor says
    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
        • Women Breaking the Mold
        • Rising Stars
        • Diversity
        • Most Interesting Social Media Accounts in Plastics
      • Newsletters
      • Resin pricing news
      • 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
        • 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
      • Commodity TPs
        • Historic Commodity Thermoplastics
      • High Temp TPs
        • Historic High Temp Thermoplastics
      • ETPs
        • Historic Engineering Thermoplastics
      • Thermosets
        • Historic Thermosets
      • Recycled Plastics
        • Historic Recycled Plastics
    • 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