TPE resin pricing: PE, PP, and PS all rising

In some of the lowest availabilities seen this year, spot polyethylene (PE) prices added $0.01/lb last week in light trading volume. Michael Greenberg, CEO of spot-trading platform The Plastics Exchange (TPE), reports that light domestic offers began to take up producers’ proposed $0.03/lb price increase, with export offers up $0.01 to $0.02/lb. PE most recently traded at $0.545/lb, which is higher, but overall still $0.04/lb off earlier highs. Key going forward will be the export market, with relative increases in the dollar’s strength and diminishing demand from Europe pointing to a possible slowdown.

Polypropylene (PP) exhibited light trading volume with rising prices, adding $0.01/lb in the first two days of May, according to Greenberg. Spot prices in April rose $0.04/lb, with April polymer-grade propylene up $0.035/lb for the month. Going back to March, propylene is up $0.11/lb, but spot PP is only up $0.07 to $0.08/lb, squeezing producer margins. Those producers have nominated a $0.05/lb price increase for May contracts, and in the face of refinery-grade propylene increase, Greenberg says at least one producer is pushing a $0.07/lb increase. The export market has largely dried up on the basis of increases in monomer costs.

Polystyrene (PS) is up $0.03/lb in some instances since April, and although it hasn’t been accepted industry wide, spot levels indicate that the increase is likely to stick. Greenberg says railcars of good offgrade PS are now in the $0.80’s/lb, with offcolor and transitional resin at discounted prices. Spot benzene added $0.05/gallon, ending the week at $3.91 to 3.92/gallon.