Prices for PVC, PS, engineering resins on the rise

North American prices for PVC and polystyrene have increased since March 1, marking the second consecutive monthly price for those materials.

PVC climbed by an average of 2 cents per pound and PS was up by 5 cents.

Regional prices for nylon 6 and 6/6, polycarbonate and ABS resins also increased in the first quarter of 2024. Nylon prices are up an average of 10 cents per pound, with prices for PC and ABS up 5 cents each.

PVC prices had climbed an average of 3 cents per pound in February after being flat in January. The first quarter is typically a time when makers of construction products fill their PVC inventories in advance of construction season for most of the U.S. and Canada.

Market sources told Plastics News that domestic PVC sales surpassed 900 million pounds in February, marking the first time they've reached that level since August 2022. One market source said February production "showed no signs of turnaround activity impacting supply as inventory increased."

The source added the March increase was partly an attempt by PVC makers to improve profit margins. Destocking activity in the market has ended, with "modest restocking" happening as buyers head into the second quarter.

Market analyst Paul Pavlov said a relatively warm winter has construction work starting earlier in the year than expected. He added the U.S. market is benefiting from "infrastructure spending that's been like none other before."

U.S. housing starts for February came in at an annual rate of 1.52 million, according to the U.S. Census Bureau. That number is up 2 percent vs. January and up almost 3 percent vs. the same month in 2023. Construction activity accounts for about 60 percent of North American PVC demand.

Pavlov, who's with Resin Technology Inc. in Fort Worth, Texas, also said that global PVC prices could drop if excess material from China hits global markets.

The 5-cent PS resin price hike comes after it rose 4 cents in February. Prior to those two increases, prices had dropped for three straight months, with those declines totaling 9 cents.

The 5-cent March hike followed a price increase for benzene, which is used to make styrene monomer. Benzene prices surged almost 13 percent to $4.10 per gallon in March, an increase of 46 cents.

One market watcher told PN that benzene prices have been affected by force majeure declarations, refilling inventory of that material in China after Lunar New Year and by shipping issues in Middle East trade lanes because of ongoing conflict in that region.

In the engineering resins market, first-quarter price hikes for nylon and PC reversed trends that had seen prices drop in the fourth quarter of 2023. Prices for all grades of nylon 6 and 6/6 had been down an average of 5 cents between October and December, with PC prices down an average of 2 cents.

But stronger demand and higher feedstock costs sent prices for those materials — as well as for ABS — in the other direction in the first quarter.

Pavlov said increases in oil prices and freight rates also have played a role in lifting prices for engineering resins.

"I see consumer goods demand lacking the excitement seen in 2022, so this is just a pure inflation/higher energy pricing play," he added.

Nylon resin supplier BASF placed force majeure supply limits on some nylon grades in late February. In a letter to customers, officials cited "unprecedented complications impacting operations in our [nylon] production" as reasons for BASF taking that action. The firm "is not able to supply required volumes of materials necessary to meet market demand," they said.

Celanese Corp. and AdvanSix Inc. both cited higher raw material costs in letters announcing price increases for nylon in mid-February and early March. BASF also had announced a price increase for nylon feedstock caprolactam in early March.

Supplies of imported ABS also will be affected by a preventive maintenance shutdown at a plant operated by Elix Polymers SL in Tarragona, Spain. That shutdown is expected to last from May 6-26. The firm has asked customers to place orders for needed material before the shutdown.