April launched on an sudden resin worth enhance for PE along with worth will improve for the 4 amount resins — ABS, PC, and nylons 6 and 66, which have been based mostly on higher feedstock costs versus a surge in demand or present factors. The April-Might timeframe observed very important worth decreases for PP and fewer so for PET, whereas PS and PVC prices remained flat.
Complete, projections for conclusion of the second quarter have been for comparatively regular prices nearly all through the board for these resins. Nonetheless, there was the caveat of what is considered a “bullish” forecast for the 2024 hurricane season. The potential for unscheduled manufacturing shutdowns and associated transportation factors that might consequence would change this pricing state of affairs.
Provide: DomoThese are the views of shopping for consultants from Resin Experience Inc. (RTi); senior analysts from Houston-based PetroChemWire (PCW); CEO Michael Greenberg of The Plastics Alternate; Scott Newell, authorities vice chairman, polyolefins at distributor/compounder Spartan Polymers; Mike Burns of Plastic Resin Market Advisors; and resin pricing expert Robin Chesshier.
PE Prices Up, Then Flat
Polyethylene prices moved up 3¢/lb in April, though it does not appear the rise was completely utilized all through the market, in line with PCW’s Affiliate Director for PE, PP, and PS David Barry along with Greenberg, Burns and Chesshier. This, as fully completely different outcomes obtained right here from the two predominant indices —one assessing a 3¢/lb worth hike whereas the alternative rolled over prices.
Experiences Greenberg, “The Plastics Alternate spot PE prices averaged down 1¢/lb in April.” He characterised the house market as fairly company and tightly geared up in Might, and ventured the three¢/lb enhance may flip into completely utilized by month’s end. Within the meantime, PE suppliers have been out with a 3¢/lb Might enhance, though this was not anticipated to materialize.
Noting the April enhance — led by sudden above-average demand boosted supplier margins and challenged the whole return of the January enhance — Burns ventured that the continuation of neither feedstock pressure nor manufacturing factors, PE regular prices with ample inventory gave the impression to be the state of affairs earlier to the looks of the annual hurricane season. PCW’s Barry described common demand as returning to “common ranges” versus prebuying train, with spot market prices as pretty regular. Resin pricing expert Chesshier ventured the potential for a worth low cost in June and uncertainty for July as a consequence of energetic local weather forecasts.
PP Prices Down
Polypropylene prices in Might have been largely anticipated to drop by about 2¢/lb, according to propylene monomer, following the prolonged awaited commerce worth adjustment in April of a ten¢/lb low cost, with sometimes ‘regular’ pricing projected for the June-July timeframe, in line with Barry, Newell and Greenberg. Within the meantime, a minimal of 1 PP supplier was out with a 3¢/lb margin enhance for Might, though help was unlikely. These sources concede that PP pricing is extra prone to proceed monitoring the monomer.
Every Barry and Newell observed uncertainty in relation to propylene availability and PP demand that, whereas increased than fourth quarter 2023, was sometimes slower than earlier years. A key problem is propylene availability, which they described as nonetheless comparatively tight with a deliberate shutdown of 1 PDH plant scheduled for June. “Whereas PP demand in April was up, it was troublesome to discern whether or not or not this was as a consequence of ‘precise demand’ versus prebuying as PP prices dropped. We’ll shortly uncover out,” Newell notes.
Greenberg ventured that monomer and PP pricing was extra prone to be flat and well-known that PP inventories have been down a bit by Might’s end and that suppliers must crank up manufacturing, as PP plant working costs have been largely throughout the mid-70s percentile. Within the meantime, Canada’s Heartland Polymers restarted its PDH unit and is characterised as “aggressive” in selling its PP homopolymer and random copolymer resins, whereas Formosa launched on a model new PP manufacturing unit at Stage Comfort, Texas.
PS Prices Flat for Now
Polystyrene prices rolled over in Might, following April’s growth, and the event for June-July timeframe was for continued flat pricing to in all probability lower, in line with PCW’s Barry and resin pricing expert Robin Chesshier. This following first quarter prices will improve totaling 10¢/lb, pushed primarily by benzene prices. Based on market fundamentals whereas barring any predominant present disruption, PS prices may keep comparatively regular.
Within the meantime, Trinseo commenced a sale course of for its 50% possession in Americas Styrenics (“AmSty”, The Woodlands, Texas), a 3 means partnership with Chevron Phillips Chemical, which is anticipated to occur by early 2025. There are moreover commerce rumors that Entire Energies, which operates a styrene monomer plant in a 50% three means partnership with SABIC and a Entire PS unit, talked about to be one among many world’s largest, every in Carvilee, Louisiana, could also be making an attempt to divest of this styrenics enterprise.
PVC Prices Flat
PVC prices gave the impression to be poised for relative stability, following unusual back-to-back will improve totaling 6¢/lb by means of April, in line with Paul Pavlov, RTi’s vice chairman of PP and PVC, and PCW’s Affiliate Director PVC & Pipe Donna Todd. “Demand is relatively robust — notably as a consequence of infrastructure initiatives, however nonetheless not as robust as years earlier,” Pavlov says. He talked about residence demand for PVC was up by nearly 10% with exports up 3%. On the same time, he well-known that every Shintech and Formosa have been bringing on new PVC functionality this summer time season with improved pricing offers seemingly obtainable.
PET Prices Down, Then Flat
PET prices in Might have been poised to drop by 1¢ to 1.5¢/lb based totally on raw supplies formulation costs, notably a drop in paraxylene, in line with Mark Kallman, RTi’s vice chairman of PVC, PET and engineering resins. Kallman ventures that prices would then reverse to March-April ranges for lots of the third quarter. He characterised resin availability as sturdy, with competitively priced imports persevering with to be a component no matter higher freight costs. “Demand is a bit improved nevertheless not robust.”
ABS Prices Up, Then Flat
ABS prices moved up 4¢/lb to 5¢/lb by April, though suppliers had sought 7¢/lb-to-9¢/lb, based totally on worth escalation in key feedstocks similar to benzene, in line with Kallman. No matter one predominant supplier in quest of a model new worth hike, Kallman ventured unlikely help for it and that comparatively regular pricing would proceed by means of third quarter. He characterised demand as “common.”
PC Prices Up, Then Flat
Polycarbonate prices moved up between 3¢/lb-to-5¢/lb by April, no matter suppliers in quest of will improve of 10¢/lb, and forward pricing for third quarter is extra prone to be comparatively regular, in line with Kallman. As beforehand reported, prices dropped 3¢/lb-to-5¢/lb throughout the January-February timeframe. Kallman characterised demand as static with good present, along with well-priced imports. Nevertheless well-known that every SABIC and Trinseo have plans to shutter PC plant manufacturing in Europe as a consequence of predominant new functionality launched on by China.
Prices of Nylon 6, 66 Up, Then Flat
Prices of nylon 6 moved up 7¢/lb-to-9¢/lb in by April, though suppliers sought will improve of as a lot as 24¢/lb. This following downward pricing in fourth quarter of ultimate 12 months, in line with Kevin Mekaru, RTi’s senior enterprise unit chief, commodity plastics. Based on lower or common costs of key feedstocks along with caprolactum, propylene and benzene, he ventured comparatively flat pricing by means of third quarter.
Prices of nylon 66 moved up 5¢/lb-to-7¢/lb by April, though suppliers sought will improve throughout the double digits, in line with Kallman. He characterised the market as common with lower raw supplies costs that will successfully translate to comparatively regular pricing for a lot of of third quarter.