Prices climb for PVC, PS

North American prices for PVC and polystyrene resins both have increased since Feb. 1.

Prices for all grades of PVC — including both suspension and dispersion resins — are up an average of 3 cents per pound, while prices for all grades of PS are up 4 cents. PVC prices had been flat in January after declining by 1 cent in both November and December.

Some market watchers had expected higher prices in January, since construction suppliers typically build their inventories early in the year, but those hikes arrived in February instead.

One industry source told Plastics News that the February PVC price hike was the result of increased demand for the material combined with higher prices for ethylene and chlorine feedstocks. PVC makers now are seeking another 3 cent price hike for March.

U.S. housing starts for January came in at an annual rate of 1.47 million, according to the U.S. Census Bureau. That number is down more than 1 percent vs. December 2023, but up almost 9 percent vs. the same month in 2023. Construction activity accounts for about 60 percent of North American PVC demand.

PS resin prices jumped up 4 cents in February after dropping 2 cents in January. The February hike ended a streak of three straight monthly price drops for the material. Those declines had totaled 9 cents for the three months.

The 4-cent hike followed a price increase for benzene, which is used to make styrene monomer. Benzene prices surged 14 percent to $3.64 per gallon in February, an increase of 45 cents.

In spite of the feedstock-related price increase, one market watcher told PN that regional PS demand in early 2024 "is looking lousy, as it has been for a while." PS "just has a hard time competing against alternatives such as polypropylene and PET, which have a better reputation in terms of recyclability," the source said.

PS pricing in early 2024 also could be affected by a temporary shutdown of styrene production at a plant operated by Americas Styrenics in St. James, La. The unit was taken down for scheduled maintenance on Jan. 21 and resumed production on Feb. 23. The unit has annual production capacity of about 1.1 billion pounds of styrene.