Resin Pricing-Production News

Average polyethylene (PE) prices shed another $0.02/lb, while spot polypropylene (PP) prices dropped another $0.04/lb last week, as lower prices were welcomed by buyers filling in supply gaps from the inventory drawdown while awaiting this price relief. Spot-trading platform, The Plastics Exchange (TPE), noted that while there were many transactions, volumes remained small since the overall sentiment continues to be that the market will continue to ease.

Some $40 million in R&D and four years later, Invista says it has a new production technology for producing adiponitrile (ADN), a key ingredient for nylon 6,6 polymers and fibers. Invista says the benefits of the new ADN technology include improved product yields, reduced energy consumption, lower CO2 emissions, enhanced process stability and reduced capital intensity, compared to existing technologies.

Average spot polyethylene (PE) and polypropylene (PP) prices slid $0.02/lb last week, and contracts for both materials will be marked significantly lower in May. Spot-trading platform, The Plastics Exchange (TPE), reported that resin trading continued to improve last week, as lower prices worked their way downstream, spurring some purchases.

Most commodity grade resin prices were a penny lower last week, although polyethylene (PE) film grades managed to hang steady. Spot resin trading platform, The Plastics Exchange, reported that activity was better, and although many buyer inquiries were simply testing the market for price, TPE noted that a larger percentage of transactions were completed than in the previous week. Renewed efforts to implement any of a proposed $0.07/lb PE increase in May have already been abandoned, with flat contracts or even a lower settlement now likely.

INEOS Olefins & Polymers Europe (Rolle, Switzerland) is considering selling its Rosignano, Italy and Sarralbe, France high-density polyethylene (HDPE) plants as part of a broader strategic review. European resin manufacturers, which largely rely on petroleum-derived naphtha for key monomers like ethylene, have been at a huge cost disadvantage to North American firms that utilize natural gas for their petrochemical feedstocks at a time when shale gas exploitation has pushed gas prices to extremely low levels.

Spot resin trading remained challenging last week, as the stream of offers continued to flow at a heavy rate and prices were steady to mostly lower. Spot-trading platform The Plastics Exchange (TPE) noted that despite price increase nominations, April resin contracts for both polyethylene (PE) and polypropylene (PP) rolled flat.

China's polymer imports posted a noticeable rise from January to February 2012 according to the pricing service ChemOrbis, which analyzed data from Chinese Customs. The increase made up for a steep drop recorded from December 2011 to January 2012, which was impacted in part by the weeklong Chinese New Year holidays that took place in January rather than February this year.
 

Spot resin prices were lower last week amidst very good trading activity, according to spot-trading platform, The Plastics Exchange (TPE). March polypropylene (PP) contracts were up $0.05/lb bringing the 2-month total to $0.215/lb, with the price hikes described as being strictly cost-push while demand has wavered. After securing half the $0.06/lb price increase in February, polyethylene (PE) producers have mostly sought to implement the balance of the increase in March.

Polyethylene and polypropylene each gave back the $0.01/lb that was tacked on the previous week, in a week that was busy for the spot resin markets. The Plastics Exchange (TPE) reports there was a good flow of material seen at slightly lower prices, and while demand remained slack, a fair number of deals still came together. The markets have lost some of their upward momentum, as March PP contracts settled up just a nickel after being initially nominated to increase $0.15/lb.

Polypropylene (PP) prices edged higher last week in Asia, rising as demand sentiments lifted. Gains in crude and naphtha rates coupled with firmer feedstock propylene also supported the rise in spot PP values, according to Polymerupdate. PP injection molding prices were assessed up at $1430/tonne CFR Far East Asia, while CFR South East Asia prices were assessed up at $1450/tonne.