TPE resin pricing: PE, PP, and PS all higher

Tag : hdpe regrind

E-Weekly
Jun 6th, 2008 Print this article TPE resin pricing: PE, PP, and PS all higher
By Modern Plastics Editorial Staff
Accepting a $0.01/lb price increase mostly because a $0.05/lb priceincrease was looming in June, buyers of polyethylene (PE) on The Plastics Exchange (TPE) were active according to CEO Michael Greenberg. PE pricessaw an average gain of $0.03/lb during May, with the higher pricesaffecting demand as recent spot transactions have only been for oneand two railcar lots. In terms of availability, Greenberg reportsthat high-density polyethylene (HDPE) injection grades and linearlow-density polyethylene (LLDPE) film grades are tight. Highmolecular weight film grades were available, but this could be areflection of bag bans. In the export market, South American demandis strong, but European interest has dimmed, with logistics issuesfrustrating European traders, according to Greenberg.
In polypropylene (PP), spot prices added $0.015/lb in the finalweek of May, bringing the full-month increase to $0.05/lb.Greenberg says that domestically the high prices have affecteddemand, but the spot market has been active since further contractincreases loom. June doesn’t appear to offer a respite in themonomer or the polymer, with prices for June contracts looking toadd $0.05 to $0.08/lb. High propylene costs have led producers tolimit production, which has further constricted supply. Greenbergpoints out that processors who can run wide-spec, offgrade, orregrind PP are seeing slightly better prices, but even in theselower-end materials supplies are becoming tight. Exportopportunities are seen in Latin America, with some Asian demand,but no European interest.
After holding their ground for the first half of the month, spotpolystyrene (PS) prices rose around $0.035/lb over the second halfof May with a $0.015/lb increase in its last week. Benzene remainsthe driver, hitting $4.35/gallon according to The PetroChem Wire ( http://www.petrochemwire.com ), before dropping to around $4.25. For June, general-purposepolystyrene has nominated a $0.04/lb increase, with high-impact PSfacing a $0.06/lb increase. Greenberg says winnowing of U.S. PSproduction to just three players has created a market that canreact quickly to shifts in supply and demand, giving supplierspricing leverage.