Resin Raw Material Pricing for Plastic Injection Molding 2013

The trend for commodity and engineering resins for the first quarter of 2013 appear to be trending flat-to-down according to an article in Plastics Technology April 2013.  The following pricing information was printed in Plastics Technology April 2013 article “Most Resin Prices Flat or Lower written by Lilli Manolis Sherman, Senior Editor.   ABS is the exception due to good domestic demand and other global factors.  Both PE and PP jumped up in the first quarter but a reverse in feedstock prices, lackluster demand and some improvements in supplier inventories now are pushing prices in the other direction.  The same goes for Polystyrene pricing, PC and Nylons 6 and 66.  This is the overall outlook according to Resin Technology Inc and CEO Michael Greenberg of the Plastics Exchange in Chicago.

HDPE, LL/LDPE Flat

Polyethylene price moves in February were split with HDPE injection molding grades up while LDPE and LLDPE saw no change after the January price increase.  Suppliers were seeking new increases for HDPE and LL/LDPE but implementation is doubtful because the lack of demand and declining monomer prices according to Mike Burns , VP of PE at RTI.  The move to hike HDPE prices was attributed by suppliers to increased demand and low inventories.  The tightness in PE supply appears to be more directly linked to pre-buying late last year in anticipation of price hikes and export demand.  Both Greenberg and Burns agree that, ethylene supply/demand should be quite well balanced. 

PP Prices Up but Not for Long

Polypropylene contract prices moved up in February following propylene monomer contract prices penny for penny.  This came after PP prices surge by in January, following the monomer’s increase plus a surcharge.  But a downward trend appeared imminent as at least one propylene contract price nomination in early March posted a reduction. 

Scott Newell, RTI’s director of client services for PP, foresaw a drop in monomer and PP prices in March with potential to keep going even lower.  Newell says “monomer tabs are expected to move downward from May through the fall” and he projects PP prices to follow suit.

Newell says February demand was very weak as there was a clear response from the industry to the sudden, whopping increases.  While some rebound in demand is likely, Newell says he does not expect much more growth this year over that of the last two years.