August 30, 2016 Updated 8/30/2016
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After an uneventful July, North American resin markets became active again in August, with prices for polypropylene and solid polystyrene climbing while prices for PET bottle resin fell.
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The North American PP resin market was able to end its pricing slide in August, with average selling prices moving up an average of 3.5 cents per pound.
That matches a similar price increase for propylene monomer feedstock. Market sources said propylene supply issues played a role in the resin hike, as did a moderate decline in the amount of imported PP available in North America. Prior to the August increase, regional PP prices had declined for 5 consecutive months, with those decreases totaling 10 cents per pound.
North American PP demand grew only 0.5 percent in the first 7 months of 2016, according to the American Chemistry Council. Domestic sales were flat, but the overall market was lifted by a 24 percent jump in export sales.
Regional selling prices for solid PS resin also increased in August, bouncing up an average of 2 cents per pound. That increase was tied to a jump in prices of benzene feedstock, which is used to make styrene monomer. Benzene prices for August were up 17 cents to $ 2.29 per gallon, a hike of 8 percent vs. the prior month.
The August increase basically cancels out a 2-cent drop that hit the PS market in June. Prices for the material had been flat in July.
Regional prices for PET bottle resin went in a different direction than PP and PS in August. Prices for the material fell by an average of 1 cent per pound, due in part to a drop in prices for paraxylene feedstock.
The PET price drop ends a run of three straight months in which prices for the material were flat. Regional PET prices hadn’t moved since climbing 2 cents per pound in April.
