Prices for propylene monomer feedstock fell again in March which may help to drive down cost.
Weak demand for injection molding of rigid packaging and consumer/institutional products in the past two months may increase availability, stated Frank Esposito in Plastics News article “Polypropylene prices drop in March”.
PP expansion projects are expected to produce new capacity in the upcoming years; this will lead to increased PP exports from North America.
In January, an increase in price for polycarbonate and polycarbonate blends in the Americas including Mexico occurred. The price increases were due largely because of key raw material price increases that are used in the manufacturing process. Plus, “Polycarbonate resins market is experiencing huge growth which is expected to continue, mainly driven by the Asia-Pacific resin and intense efforts at the customer’s end to provide better products”, which is stated in the UV Curable & Polycarbonate Resin Market Analysis article, all driving up the price of polycarbonate resin.
“Prices may increase because of a benzene feedstock price increase but if suppliers of imports opt to remain highly competitive and do not jump on the price hike, domestic suppliers will have a hard time implementing a price hike. ABS demand remains strong especially in the automotive, electronics and consumer markets,” states “Mark Kallman, director of client services for engineering resins at RTi.
“Nylon 6 & 66 prices may raise due to the increase cost of benzene feedstock. Demand has fluctuated and if there is a price increase it will depend on the demand for this type of resin”, stated Kallman.
Lower prices for paraxylene feedstock has been lower the prices slightly for PET. Demand has also lowered due to the bitter cold winter reducing demand for soft drinks and bottle water.
New PE capacity in North America will eventually mean lower selling prices for material. Producers are hoping to capitalize on growing suppliers of low-cost natural gas feedstock in the region.
Polystyrene (PS) prices continue to increase because of higher benzene feedstock prices. As well as, an increase in consumer-based products due to an improving US economy, particularly those in the food service and food packaging and electrical/electronic markets which rely on PS.
From the Plastics Industry Snapshot Winter 2014 written by Michael Benson and David Evatz noted the following findings. “The Plastic industry appears to have positive momentum going into 2014 as the number of plastic transactions increased 15% in the second half of 2013 versus first half of 2013. The majority of injection molding activity occurred in industrial plastics, followed by even mix of medical plastics, automotive plastics and plastic packaging.”
These pricing and industry trends are important for a custom plastic injection molder like Crescent Industries. For more information on Crescent Industries services and capabilities, please click here.