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Issue link: http://pty.epubxp.com/i/827817
Overall, the trajectory of prices for commodity resins appeared to be downward last month. Prices of three of the five resins—PP, PS and PET, dropped. While prices of PVC and PE held even in April, the former was likely to decline before the end of May and the latter had potential for a decrease this month after remaining flat in May. Key drivers included lower feedstock costs, lower export prices and, very crucially, improved feedstock and resin supplies. That was the outlook last month from purchasing consultants at Resin Technology, Inc. (RTi), Fort Worth, Texas (rtiglobal.com), CEO Michael Greenberg of the Plastics Exchange in Chicago (theplasticsexchange.com), and Houston-based PetroChemWire (PCW; petrochemwire.com). PE PRICES FLAT FOR NOW Polyethylene prices were flat in April, after moving up 3¢/lb in March as suppliers split their 6¢/lb increase into two steps, but delayed the Commodity Resin Prices Falling By Lilli Manolis Sherman Senior Editor second increment to May. So far this year, PE prices are up 8¢/lb due to tight supplies. Mike Burns, RTi's v.p. of client services for PE, said implementation of the May increase was unlikely, as inventories have been improving. He expected PE prices in May to remain flat with possible downward pressure this month. But he cautioned, "If oil remains at $50/bbl, we may expect a return of the March 3¢/lb increase." His message was that the slow but steady recovery of inventories will keep prices less volatile and perhaps lower. He also cited new PE capacity scheduled to be brought on stream at summer's end by both Dow and CPChem. The Plastics Exchange's Greenberg supported this view: "Many market partici- pants believe that peak pricing is already in place. Market momentum has turned towards bearish as several of the new or expanded petrochemical complexes get closer to completion." PCW reported that PE spot prices moved lower in export and wide-spec channels, while domestic prime price levels appeared to hold firm. "Availability continued to improve, led by HDPE blow molding and film grades. May was expected to be a turning point for HDPE injection molding, LLDPE, and LDPE supply balance." PP PRICES DROP Polypropylene prices dropped 6¢/lb in April, in step with March propylene monomer contracts, which settled at 46¢/lb. Based on declining spot monomer prices in early May, April monomer contracts had the potential to drop another 6¢/lb, with PP fol- lowing penny for penny, according to Greenberg and Scott Newell, RTi's v.p. of PP markets. Newell discounted reports that suppliers might be aiming for PP margin expansion, which he said the market would not support. Moreover, he sees potential for further price decline this month. "PP prices are going to look a lot better for processors in the second half of 2017, as monomer supplies Polyethylene Price Trends HDPE Injection APR MAY HDPE Blow Molding APR MAY HDPE HMW APR MAY LDPE APR MAY LLDPE Butene APR MAY Market Prices Effective Mid-May 2017 Resin Grade ¢/lb POLYETHYLENE (railcar) LDPE, LINER . . . . . . . . . . . . . . . . . . . . . . . . . . . 93-95 LLDPE BUTENE, FILM . . . . . . . . . . . . . . . . . . . . 79-81 NYMEX 'FINANCIAL' FUTURES . . . . . . . . . . . . 50 JUNE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 HDPE, G-P INJECTION . . . . . . . . . . . . . . . . . . . . 95-97 HDPE, BLOW MOLDING . . . . . . . . . . . . . . . . . . . 85-87 NYMEX 'FINANCIAL' FUTURES . . . . . . . . . . . . 46 . 25 JUNE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 . 50 HDPE, HMW FILM . . . . . . . . . . . . . . . . . . . . . . . 98-101 POLYPROPYLENE (railcar) G-P HOMOPOLYMER, INJECTION . . . . . . . . . . . 74 . 5-76 . 5 NYMEX 'FINANCIAL' FUTURES . . . . . . . . . . . . 48 . 00 JUNE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 . 25 IMPACT COPOLYMER . . . . . . . . . . . . . . . . . . . . . 76 . 5-78 . 5 POLYST YRENE (railcar) G-P CRYSTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . 102-104 HIPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108-110 PVC RESIN (railcar) G-P HOMOPOLYMER . . . . . . . . . . . . . . . . . . . . . 83-85 PIPE GR ADE . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82-84 PET (truckload) U . S . BOT TLE-GR ADE . . . . . . . . . . . . . . . . . . . . . 56 . 5 Lower feedstock costs, improved supplies, lower export prices are among key factors . @plastechmag 71 Plastics Technology YO U R B U S I N E S S Resin Pricing Analy sis