Plastics Technology

JUL 2017

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? PP PRICES BOTTOM OUT Polypropylene prices dropped another 7.5¢/lb in May, for a total of 13.5¢/lb since March. Scott Newell, RTi's v.p. of PP markets, thought prices were near bottoming out, with the potential of another penny drop possible, He expected prices to remain rela- tively flat in June and this month as well: "I think we'll see less volatility for the rest of the year." Greenberg noted that even with the price reduction, PP contract prices were still up 7¢/lb in 2017, after the first quarter's whopping 20.5¢ price hikes. Newell characterized PP demand as soft in April, with May showing a rebound as prices dropped, though he admits it's difficult to tell how much of the demand is real, rather than just processors restocking at the lower prices. He noted that in April, suppliers responded energetically to the lackluster demand, dropping production rates to 83% from the low 90s. However, Newell expected that production rates would again rise. He added that exports have been very weak, with prices lower but not quite low enough yet. He also noted that PP imports, after the big spike last year, are pretty much back to 2015 levels. PCW reported that PP spot prices were firm amid growing signs that the price downtrend of the previous months was coming to an end. Prime direct-sales volumes were reported to be up in May and expected to remain so in June, yet secondary market activity was viewed as sluggish. Greenberg character- ized PP trading as good at the end of May, but saw it becoming challenged by both a lack of quick-ship supply and buyers' unre- alistic pricing expectations. He noted that spot prices, after 10 weeks of decline, rallied upward by 1¢/lb. PS PRICES DOWN Polystyrene prices dropped 2-3¢/lb in May, following the April 5¢ decrease. Mark Kallman, RTi's v.p. of client ser- vices for engineering resins, PS, and PVC, attributed the decline to lower feedstock costs in the second quarter, including benzene and styrene monomer. He noted that falling prices of butadiene were expected to shrink the price delta between GPPS and HIPS. PCW reported that PS spot prices continued to move lower at the end of May—a trend that started in March. Polystyrene Price Trends GPPS MAY JUNE HIPS MAY JUNE Polypropylene Price Trends Homopolymer MAY JUNE Copolymer MAY JUNE 7.5¢/lb 7.5¢/lb Kallman added that spot styrene monomer prices were down by 12% and spot benzene prices were also dropping, so that July benzene contracts were likely to be lower than the June $2.71/gal contract price. He did add that some planned global maintenance in the third quarter could tighten up monomer supply and put some upward pricing pressure on the resin. PVC PRICES FLAT PVC prices remained flat in May and were expected to hold even in both June and July. This was despite lower prices for ethylene and vinyl monomer. RTi's Kallman noted that planned and unplanned plant shutdowns caused some supply tightness, though he expected the supply situation to improve in the third quarter. Meanwhile, domestic PVC demand was expected to increase through the quarter, following a wet spring that affected the construction market. Kallman also noted that there were indications that demand for exports would also be good in this quarter. PET PRICES DOWN Domestic bottle-grade prime PET prices in May averaged 55.7¢/lb, down 0.8¢ from April, based on PCW's Daily PET Report. That price represents PET business on a delivered Chicago basis. The price on June 2 dropped to 53¢/lb, owing to supply outpacing demand. Nonetheless, two of four PET suppliers had proposed a 3¢/lb increase for June 1. Also, suppliers had tacked on a surcharge of 1-1.5¢/lb in May, due to the doubling of the price of isophthalic acid (IPA) feedstock. Meanwhile, prices of imported prime PET, with an IV of 78 dl/g or higher, also fell in May, averaging 53.9¢/ lb, down 2.1¢ from April. This represented PET resin on a delivered duty-paid U.S. port basis. The price for imported PET on June 2 was down to 52¢/lb. PET imports in the first quarter were up 7% from first-quarter 2016. In May, feedstock cost for PX, PTA, and MEG averaged 51.81¢/lb of PET resin, according to a calculation used to price prime PET for monthly invoicing by suppliers and distributors. ABS PRICES DROPPING ABS prices increased 15-20¢/lb through April, and then prices dropped 5¢/lb in May and were heading down by at least another PVC Price Trends Pipe MAY JUNE Gen. Purpose MAY JUNE PET Price Trends Bottle Grade MAY JUNE 2-3¢/lb 0.8¢/lb 2-3¢/lb 54 JULY 2017 Plastics Technology PTonline.com YO U R B U S I N E S S Resin Pricing Analy sis

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