Feedstock, market negotiations see resin prices continue to drop
North American prices for polypropylene and PET bottle resin continued to drop in October.
Regional PP prices were down an average of 15 cents per pound, with PET prices ticking down an average of 2 cents, according to market sources contacted by Plastics News.
The PP drop is a combination of a decline in price for polymer-grade propylene (PGP) feedstock and buyers reclaiming some margin from suppliers, sources said. The PGP market couldn't reach a settlement price for October, but the drop was estimated to be 10-12 cents. PP buyers then regained 3-4 cents in margin.
PP prices in September had tumbled 8 cents per pound. Prices for the material now have declined for five consecutive months. Combined with other increases and decreases, PP prices now are down a net of 36 cents so far in 2022.
On the capacity front, new PP supplier Heartland Polymers recently began production of homopolymer resin at a plant in Strathcona County, Alberta. Heartland is expected to produce more than 1 billion pounds of PP annually.
PET bottle resin prices declined by 2 cents in October after sliding a total of 24 cents from July through September. Even with these recent drops, PET prices are up a net of 22 cents so far in 2022. The PET picture is clouded by contract buyers — with prices tied to feedstocks — actually seeing slight price increases on PET last month. PN is showing the market price for the material.
The September PET price decline had been the result of a price decrease for paraxylene (PX) feedstock, combined with lower demand and higher inventories of PET. Strong seasonal demand for bottled water and other beverages played a role in earlier PET price increases, as well as a lack of new capacity and freight and logistics challenges.
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