North America sees Polypropylene prices rise, amid falling PE and PS

28-Feb-15

North American prices for polyethylene and polystyrene resins continued to fall in February, while regional prices for polypropylene showed a surprising increase, as per Plastics News. Prices for all grades of PE are down an average of 5 cents/lb since Feb. 1. Regional PE prices now have fallen for four consecutive months, after not seeing a single price drop for two years. The four-month total has shaved an average of 16 cents/lb off of PE prices. On the feedstock side, prices for crude oil — both in the region and globally — remain low when compared to prices of the last few years. Regional prices were near US$48 per barrel in late trading Feb. 26, a drop of more than 50 % from prices seen in mid-2014. Oil is the global PE price-setter, even though most PE made in North America is based on natural gas. U.S./Canadian PE demand is off to a rough start in 2015. In January, sales of linear low density PE were down 12%, according to the American Chemistry Council, with high density PE sales down 8% and sales of low density PE down 2% compared to the same month in 2014. A resin buyer in the southeastern U.S. told Plastics News that recent PE prices have been even lower in the secondary market, which could be an indicator that more price declines could take place in March. North American PS prices took a 2-cent tumble in February after swooning 9 cents the month before. Prices for the material now have dropped for six straight months, reducing prices by a total of 23 cents per pound. The PS market continued to mirror prices for benzene feedstock, which fell almost 8% to US$2.01 per gallon in February. In PP, the tide reversed itself, sending regional prices up 1 cent/lb after they were clobbered by 10-cent drops in both December and January. Short-term PP supplies in the region have been impacted by production limits at plants operated by Ineos Group in Alvin, Texas, and by Phillips 66 in Linden, N.J. Unlike PE, North American PP demand has hit the ground running in 2015, growing almost 5% in January vs. the same month in 2014. Domestic sales for the month grew almost 6%, even as export sales slumped more than 20%.