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Issue link: http://pty.epubxp.com/i/918111
? 1¢ in margin expansion. However, Scott Newell, RTi's v.p. of PP markets, did not see evidence of margin expansion; he expected monomer prices to top out, possibly in December if the new Enterprise Product Partners propylene unit ramped up production. "In that case, December monomer contract prices could be flat to down—but if the new plant were not to ramp up enough, monomer could be flat to up," he said. Though unconfirmed, some industry talk had it that as 2018 contract negotia- tions were underway, the market was becoming somewhat more competitive, and some suppliers were backing out of margin expansions and even offering some margin erosion. The PP spot market was characterized as snug—with supplies of higher-flow impact copolymer and clarified random copolymer particularly tight—by both PCW and Greenberg. In early December, Greenberg said, "Despite the fact that PE prices are coming back down hard, PP market fundamentals are quite different; and, to buyers' frustration, prices remain firm to higher. Producers have responded to rising prices and good demand with added produc- tion, running reactors as close to capacity as practical. This has helped to keep a lid on PP prices." Both Newell and PCW characterized the overall market at year's end as tightly balanced and demand as somewhat lackluster. Newell noted that for 2017, total sales (including exports—which dropped) will be up about 1%, though domestic sales were up by 3.5%. He expected to see some continued growth in demand in 2018. PCW reported that talk of planned maintenance at several units in the first quarter, combined with no new capacity, might tighten up the market further. Although some PP has come in from abroad, Newell did not expect a flood of imports, though a lot will depend on domestic PP pricing. PS UP, BUT NOT FOR LONG Polystyrene prices were flat in November, but suppliers were seeking increases on the order of 5-6 c/lb, effective Dec. 1, according to PCW and Mark Kallman, RTi's v.p. of client services for engi- neering resins, PS, and PVC. PCW noted that the move was supported by a 50¢/gal increase in December benzene contracts (each 10¢/gal increase is roughly equiva- lent to a 1¢/lb increase in PS cost), but also characterized December as a season- ally weaker demand month. Kallman ventured that suppliers would more likely implement 4-5¢/lb, but he also expected that "a good part, if not all, of this increase will come off in January and February due to anticipated better benzene availability." PVC FLAT TO DOWN PVC pricing in November was a bit "mud- dled," according to RTi's Kallman, ranging from flat to 2¢/lb lower—after a 3¢ price hike in October. Kallman expected further price reduction in December from recognized discounts or incorporated into new 2018 contracts—for a total of 3¢/lb across the board. Not only were PVC inventories starting to build, but export business was off. PCW reported that processors—other than pipe extruders, who were able to push pipe prices to the highest level of the year— were mollified by the prospect of PVC prices dropping by at least. 3¢/lb. PCW noted that the October hike brought the total increase in PVC prices to 9¢/lb, while ethylene contract prices through September were up only 1.75¢/lb since January 2017 . Kallman predicted flat or lower PVC pricing in the first quarter, though the second quarter is expected to be strong domestically and globally. PET PRICES UP PCW reported that domestic bottle-grade PET spot resin started December at 68-70¢/ lb for railcar/bulk-truck shipments for Midwest spot delivery—up 2-3¢/lb from November. However, December contract business tied to feedstock costs was 2-5¢/lb lower for railcar and bulk-truck quantities. Domestic PET feedstock prices settled moderately higher in November, with paraxylene up 1.5¢/lb and PTA up 1¢/lb, while MEG dropped by 1.4¢/lb. Imported PET resin, with an IV of 78 or higher, on Dec. 6 was at 65¢/lb, delivered duty-paid (DDP) to the East Coast and 70¢/lb DDP West Coast, up 1-2¢/lb from November. ABS FLAT TO HIGHER ABS prices held flat from June through November, after increasing 15-20¢/lb through April and dropping 5¢/lb in May. But suppliers were seeking increases of 5¢/lb for mid-December, tied to higher benzene prices. RTi's Kallman noted that while benzene contracts settled higher, they were generally expected to drop in the first quarter, and butadiene prices dropped. He expected ABS prices for Polystyrene Price Trends GPPS NOV DEC HIPS NOV DEC 4-5¢/lb Polypropylene Price Trends Homopolymer NOV DEC Copolymer NOV DEC 1¢/lb 1¢/lb 4-5¢/lb PVC Price Trends Pipe NOV DEC Gen. Purpose NOV DEC PET Price Trends Bottle Grade NOV DEC 2-4¢/lb 2-5¢/lb @plastechmag 79 Plastics Technology YO U R B U S I N E S S