Product Categories
Contact Us

Yangzhou Chengsen Plastics Co.,Ltd

Contact: Tina Qin





Home > News > Content
June Price Jumps For North American PP And PET
Yangzhou Chengsen Plastics Co.,Ltd | Updated: Jul 03, 2018

North American prices for polypropylene resin have seen another big increase since June 1, while regional prices for PET bottle resin have increased as well.

PP prices surged 8 cents per pound in June after moving up 7 cents in May. That followed a two-month period in March-April when prices slipped a total of 7 cents.

The 8-cent June jump for PP matched similar price hikes for polymer-grade propylene feedstock, meaning PP makers were unable to increase their profit margins for the month, according to David Barry, a market analyst with PetroChem Wire in Houston.

"The monomer price increase was driven by transient supply issues, which were magnified by the fact that ethane, which yields less propylene, is the favored cracker feedstock," Barry said in an email to Plastics News.

"I think we're likely to see some giveback on propylene in the July-August period, but a lot will depend on whether the PDH [propylene] operators can maintain good rates," he added. "There are a number of wild cards in the outlook — trade policy, crude oil prices and hurricanes — but the prevailing sentiment among buyers is that PP prices have limited upside risk from here."

Larger exports of propylene out of North America also have impacted the PP resin market, according to Scott Newell, a market analyst with Resin Technology Inc. in Fort Worth, Texas.

"Propylene exports are moving out the door at a pace of 1.2 billion pounds," Newell said in an email. "Add to that several planned and unplanned outages this year [and] the ability to export propylene is leaving the U.S. without any supply cushion. Any supply disruption leaves the market vulnerable to further volatility."

Regional PP prices now are up a net of 11 cents per pound for the year. Total price volatility for the material — including all increase and decreases — has reached 40 cents per pound.

North American PP sales through May were up almost 2 percent vs. the same period in 2017, according to the American Chemistry Council. A domestic sales increase of just over 2 percent was dampened by a reduction of almost 15 percent for sales into the export market.

PP posted positive domestic sales results for those five months in film — up more than 9 percent — and injection molded caps and closures, where sales grew 7.5 percent.

PET prices rising

North American PET bottle resin prices bumped up an average of 3 cents per pound in June after moving up 2 cents in May. PET market analyst Mark Kallman of RTI said that the June increase took hold even though feedstock costs were down slightly.

"Lower crude oil and improved supplies are helping PET feedstocks, but bullish forces — such as lower domestic capacity and seasonal demand — are supporting higher PET prices from the market perspective," he explained.

Yangzhou Chengsen Plastics Co.,Ltd
Yangzhou Chengsen Plastic Co., Ltd. is a professional production enterprise dedicated to producing functional plastic materials. Our company has several specialized production lines.
Copyright © Yangzhou Chengsen Plastics Co.,Ltd All Rights Reserved.