Resin Price Report: PE, PP Prices Rise Across the BoardResin Price Report: PE, PP Prices Rise Across the Board
As expected, prices trended higher to start the new year, with half-cent gains reported on all PE and PP resin grades.
January 20, 2025

As resin trading picked back up after the holidays, spot levels ticked higher, as predicted by the PlasticsExchange, with half-cent gains recorded across all polyethylene (PE) and polypropylene (PP) grades. A slightly above average volume of resin changed hands on the trading platform, although overall activity was still ramping up as participants kicked supply, demand, and pricing tires, reports the PlasticsExchange in its Market Update.
Longshoremen’s strike averted
Much of the solid early January interest came from buyers and sellers planning ahead of the pending longshoremen’s strike on the East and Gulf coasts, which was set to start on Jan. 16. In a surprising turn of events on Jan. 8, however, the United States Maritime Alliance and International Longshoremen’s Association (ILA), which represents 50,000 members who fill 25,000 jobs, were able to agree on a new six-year labor contract. At the time of writing, the deal has yet to be ratified by the union’s membership, but the industry nevertheless was able to breathe a collective sigh of relief as the potentially disruptive port strike was averted.
In the meantime, Houston-area warehouses remain packed with resin, mostly committed to export sales, and this has limited operating rates at packaging facilities considering limited local storage options. This has backed up railcars, triggering demurrage fees and embargoes on some facilities.
While most of the country was hit with a severe winter blast this past week as well as the devastating LA fires, no relevant production issues emerged. The Houston area is expected to see temperatures dip into the low- to mid-20s by mid-month, which is reminiscent of winter storm Uri back in 2021, which essentially crippled petrochemical and resin production in Texas and paralyzed logistics before sending resin prices to record highs.
PE prices rise for second straight week
Prime PE transactions dominated the spot resin market at the PlasticsExchange and prices gained ground for the second straight week. Deal volumes for PE grades were above average, as prices gained another half-cent.
The market was largely starved of supply the past few weeks while packaging and rail delays added another level of complexity, reports the PlasticsExchange. Strong demand for Prime PE resin came from China, Latin America, and Africa. Rising crude oil and international feedstock costs, as well as escalating freight from Asia, are supporting moderately higher regional PE prices, though some buyers are folding their arms waiting for better deals.
Record-setting PE exports
Massive PE exports in December probably set a record, and the industry is dealing with myriad logistics issues. By Jan. 10, following news that the dockworker strike had been averted, demand spiked further. Producers seem content with their heavy Q4 sales and are intent on raising prices in both the domestic and export markets, according to the PlasticsExchange. Domestic Prime asking prices generally reflect the $0.05 to 0.07/lb contract increases on the table for January, which are meeting some resistance. In the meantime, spot prices are being successfully walked higher.
PP market gets busy
The PP market was busier, with completed volumes approaching the typical average as prices ticked higher. Railcar transactions were heavier as trading activity returned to normal; logistics and packaging delays are requiring more lead time and brought strong demand for packaged PP. Improved demand was spread between homo- and copolymer grades and comes ahead of Heartland’s extended polymer-grade propylene (PGP)/PP unit turnaround in Canada, which is expected to begin later this month.
Prime PP pricing gained another half-cent, supported by limited prompt availability and higher feedstock monomer costs. The trend toward rising prices was expected at the start of the year, well-forecast by the premium to 2025 PGP costs and a rising forward curve. Upcoming January PP contracts are already well-positioned to regain every bit of their $0.025/lb decline in December, and probably a bit more, too.
About the Author
You May Also Like