TPE North American resin pricing, Oct. 26-30: PP, PS steady; PE up

Polyethylene (PE) spot prices rebounded in the final week of October to mid-September levels, according to spot-trading platform, The Plastics Exchange (TPE), and its reporting partner, PetroChem Wire. Last week also saw the return of export interest, while processors digested fresh contract price increase initiatives for December. TPE notes that contract prices remain contentious, as discussions around September pricing remained mixed, and no agreements were confirmed for October. September contract prices were nominated to increase $0.04/lb, with an additional $0.05/lb increase slated for October. No November price increases were issued, but December contract prices were nominated to increase $0.03/lb. The pricing reports of market participants were mixed, with some verifying an increase to September contracts prices, while others said that various mechanisms such as rebates and TVAs have minimized any impact. In the domestic spot market, generic-prime railcars of high-density polyethylene (HDPE) blowmold and injection grades were again transacting in the low $0.50s/lb, after falling into the high $0.40s/lb earlier in October. LLDPE film butene grade was at a premium of about $0.015/lb to HDPE blowmolding. Up $0.02/lb from the week before, high-molecular-weight (HMW) HDPE film was in the mid $0.50s/lb range, with LDPE film in the mid-to-high $0.50s/lb. Overall, HMW and LDPE film prices are back to where they began October, while HDPE blowmold and injection grades, as well as LLDPE film, are several cents higher. After slowing in September, Chinese traders have stepped back into the market and started bidding for U.S. material, lifting HDPE blowmold into the mid-to-high $0.40s/lb for bulk railcars of generic-prime material on an FOB Houston basis. LLDPE film butene grade is trading in the high $0.40s to low $0.50s/lb on an FOB Houston basis.

Polypropylene (PP) prices were steady last week and liquidity remained thin. In the contract market, producers proposed increases of $0.03-$0.05/lb in November, while market participants await a November contract settlement for polymer grade propylene monomer. Domestic spot market prices were steady, with offers for generic-prime homopolymer PP in the mid-to-high $0.50s/lb and copolymer PP at a $0.015/lb premium. Spot prices are up from the high $0.40s and low $0.50s/lb seen about two weeks ago. Spot values had fallen even further than contract prices at one point in October, as buyers held back from the market to avoid purchasing high-priced inventory. There has been some limited PP export activity, with generic-prime homopolymer PP discussed in the high $0.40s and low $0.50s/lb range on an FOB Houston basis.

Polystyrene (PS) prices were roughly steady last week, with general purpose (GPPS) in the low-to-mid $0.60s/lb and high impact (HIPS) in the high $0.60s and low $0.70s/lb. In the contract market, participants are discussing a $0.03/lb producer increase initiative in November. —[email protected]