TPE resin pricing: PE and PP soften, while PS rises

Spot polyethylene (PE) prices were up an average of $0.03/lb for July, but whether producers successfully implemented their announced $0.07/lb price increase is undetermined, according to spot-trading platform, The Plastics Exchange (www.theplasticsexchange.com) and its partner The PetroChem Wire (www.petrochemwire.com). Producers have already announced an August increase of $0.08/lb, with at least one producer nominating a further September increase of $0.05/lb. PetroChem Wire and TPE report that high molecular weight and linear low-density film grades ended July in the mid $0.80’s/lb, with high-density PE blowmolding grades in the lower $0.80’s/lb. Prime low-density PE film grades finished in the low $0.90’s/lb.

TPE reports that the spot polypropylene (PP) market has softened, with producers and resellers increasing offers while buyers pull back. Sentiment shifted in the final week of July when spot propylene prices fell and August contract prices came in flat. July PP prices settled an average of $0.08-$0.10/lb higher, in line with propylene increases. TPE’s Spot Floor has shown more than 4 million lb of PP homopolymer and copolymer on offer at the finish of trading days, compared with less than 2 million lb throughout much of June.

The spot polystyrene (PS) market was slow, with a domestic contract price increase of $0.03/lb for general-purpose grades and $0.04/lb for high impact finding support. Spot prices only rose $0.01/lb during the month, after climbing by $0.08/lb in June. This outpaced contract price gains of $0.04/lb for GPPS and $0.06/lb in HIPS. Going forward, the $0.27-$0.29/gallon rise in benzene contracts from July to August points to a further increase in PS prices, as do initial ethylene contract prices.