TPE resin pricing: PE faces double-digit increases, PP remains on the rise, PS considers increase due to benzene

In the midst of upstream volatility with ethylene, polyethylene (PE) producers continue to push for a $0.07/lb price increase to July contracts and have already issued a $0.08/lb price increase for August contracts, according to spot-trading platform, The Plastics Exchange (TPE; http://www.theplasticsexchange.com) and its partner, The PetroChem Wire (http://www.petrochemwire.com). TPE sees high-density PE prices in the low to mid $0.80’s/lb, with linear low-density hovering in the mid to upper $0.80’s/lb, and low-density PE above $0.90/lb. Exports declined, including to China, where demand had been strong.

Polypropylene (PP) continues to be driven by increases in upstream refinery- and polymer-grade propylene, with July contracts up roughly $0.10/lb and August increases of $0.06/lb looming. The spot market had been slow, according to TPE, but more offers were seen last week, although buyers are only making purchases to meet “critical supply needs.” Most offers remained above $0.90/lb and many were closer to $1/lb. In the spot market, prices are only up $0.03/lb so far in July, but a $0.10/lb increase was seen in June, outpacing an $0.08/lb rise in contract pricing.

Polystyrene (PS) prices were unchanged, with general-purpose in the low $0.90’s/lb and high-impact in the high $0.90’s/lb. The PetroChem Wire says that typically, high-impact PS has a $0.02-$0.03/lb premium over general-purpose grades, but critically tight supplies of butadiene, a component for HIPS, has broadened this spread to $0.05-$0.06/lb. Producers want to raise July contract prices $0.03/lb for GPPS and $0.04/lb for HIPS, and a rise in benzene costs would support such increases.