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.
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.
