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Issue link: http://pty.epubxp.com/i/918111
As we head into the new year, the course of high-volume resin prices was up, down, and undecided. Supply/demand fundamentals are key to the projected downward trend for PE, PS, and PVC; while higher feed- stock costs and, in some cases, strong demand, are key to the upward move for volume engineering resins. There's a more indeterminate scenario for PP and PET, owing to snug capacity for the former and overcapacity for the latter. These are the views of purchasing consultants from 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 TO LOWER Polyethylene prices remained flat in November, as there was still not enough inventory buildup, due to minor produc- tion issues at several suppliers, for post- hurricane prices to settle back to "normal" levels, according to Mike Burns, RTi's v.p. of client services for PE. Burns said last month there was potential for a supplier-driven decrease of up to 3¢ even before the end of the year. "Current price levels cannot be sustained as inventories recover," he explained. Burns expected further reduc- tions this month and next, with decreases totaling 7-10¢/lb by March. By early December, both The Plastics Exchange's Greenberg and PCW reported that spot PE prices continued to "unwind," a signal of what could be a course reversal in contract prices. Said Greenberg, "There was a series of price increases since August that varied by amount and implementation date. It seems that 10¢/lb on average took hold. Now, with the spot market falling sharply, we would not consider any further contract-price advancement and expect to see contract prices begin to decline, maybe as early as December." Secondary-market Mixed Bag for Volume Resin Prices As hurricane aftermath recedes, PE, PS, PVC prices are retreating; engineering resins are rising; PP and PET are "iffy." By Lilli Manolis Sherman Senior Editor prices dropped by 7¢/lb from their peak gain of 15¢/lb in mid- October, according to all three sources. PCW said spot PE prices were mostly lower as supplier invento- ries continued to recover from Hurricane Harvey disruptions. Burns added that new PE capacity continues to come on stream, with the majority of that added volume going to exports. "U.S. export PE prices will be 7-10¢/lb lower than global prices," he said. Burns noted some concerns in the industry that ethylene monomer availability will be a challenge in the second quarter, as new PE capacity could well outpace new monomer capacity coming on stream. PP PRICES INCH UP Polypropylene prices move up 1¢/lb in November, once again in step with propylene monomer contract settlements, though some industry sources reported that PP suppliers tacked on an additional Polyethylene Price Trends HDPE Injection NOV DEC HDPE Blow Molding NOV DEC HDPE HMW NOV DEC LDPE NOV DEC LLDPE Butene NOV DEC Market Prices Effective Mid-December 2017 Resin Grade ¢/lb POLYETHYLENE (railcar) LDPE, LINER . . . . . . . . . . . . . . . . . . . . . . . . . . . 100-102 LLDPE BUTENE, FILM . . . . . . . . . . . . . . . . . . . . 86-88 NYMEX 'FINANCIAL' FUTURES . . . . . . . . . . . . 48 JANUARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 HDPE, G-P INJECTION . . . . . . . . . . . . . . . . . . . . 102-104 HDPE, BLOW MOLDING . . . . . . . . . . . . . . . . . . . 92-94 NYMEX 'FINANCIAL' FUTURES . . . . . . . . . . . . 50 JANUARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 HDPE, HMW FILM . . . . . . . . . . . . . . . . . . . . . . . 109-111 POLYPROPYLENE (railcar) G-P HOMOPOLYMER, INJECTION . . . . . . . . . . . 78-80 NYMEX 'FINANCIAL' FUTURES . . . . . . . . . . . . 57 JANUARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 IMPACT COPOLYMER . . . . . . . . . . . . . . . . . . . . . 80-82 POLYST YRENE (railcar) G-P CRYSTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . 104-106 HIPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110-112 PVC RESIN (railcar) G-P HOMOPOLYMER . . . . . . . . . . . . . . . . . . . . . 83-85 PIPE GR ADE . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82-85 PET (truckload) U.S. BOT TLE-GR ADE . . . . . . . . . . . . . . . . . . . . . 68-70 78 JANUARY 2018 Plastics Technology PTonline.com YO U R B U S I N E S S Resin Pricing Analy sis