According to Townsend's Plastic Market Monthly Report, PP Copolymer resin prices increased slightly in April from March levels for most grades.  The PMM's volume-weighted average for all PP Copolymer resin grades increased only 0.6 cents-per-pound (cpp) to 97.3 cpp.  The largest increases, 1.2 and 1.1 cpp respectively, were felt by buyers of Injection Molding, Low-Med Impact and Injection Molding-Random resin grades.

Suppliers had sought as much as a 5.0 cpp increase for April, but nearly all of that was held off after the rollover in the April propylene contract.  Propylene has already settled down 10.0 cpp for May, and this may very well support a drop in propylene resin prices for the month, with some market participants predicting further price erosion for June.

PP Copolymer resin buyers reporting to the PMM are forecasting the volume-weighted average for all grades to decrease by 9.0 cpp in May.

Townsend’s PMM benchmarks monthly transactional resin prices for PS, PVC, PP Copolymer, PP Homopolymer, PET, LLDPE, LDPE, HDPE Molding and HDPE Extrusion in the US and Canada. To participate in the benchmark or obtain subscription information please contact Terry Ulery at +1-281-873-8733 Extention 133 or email tulery@townsendsolutions.com.

 

Polyethylene terephthalate (PET) and polystyrene, both big players in the packaging industry, may have some competition as more companies look for sustainability options for their packaging needs.  Bio-based PLA, PHA, PBT and PEF are beginning to look like more viable option, which could spell trouble for the legacy plastics.

Polylactic acid (PLA), polyhydroxyalkanoate (PHA), polybutylene terephthalate (PBT) and polyethylene furanoate (PEF) are examples of polymers now being developed from bio-renewable resources.  PLA is positioned to compete with PET in thermoforming applications, but not in bottle application due to poor barrier properties. However, PEF - with its better heat and barrier properties - has the potential to replace PET.  PHA appears to be useful in several other industry segments including agriculture, medical and single-use food service where degradation is valued in packaging.

The largest producers of bio-based polymers include US-based NatureWorks and the Dutch companies PURAC and Avantium.  Major brand owners currently using bio-based packaging include, PepsiCo, Coca-Cola, Stoneyfield Farms and France’s Danone.  Some industry insiders expect demand for bio-based, biodegradable plastics will more than triple by 2015. 

According to Townsend’s Plastic Market Monthly Report, HDPE resin prices rose again in March for the fourth consecutive month as most suppliers pushed through the remainder of the 6.0 cents-per-pound (cpp) price increase they sought in February.  The PMM’s volume-weighted-average for HDPE Extrusion resin grades rose 2.9 cpp, while HDPE Molding resin grades increased by an average of 2.4 cpp.  The increases were mostly due to a tightened supply resulting from the heavy spring turnaround season and several unexpected cracker outages.

Most HDPE resin buyers reporting to the PMM do not expect their HDPE resin prices to increase in April.  This seems supported as it has just been announced that the price increase suppliers sought for April has been pushed and likely won’t be passed on to buyers until May and June.  Market sources continue to speculate on the possibility of lower prices over the next few months if the turnaround season ends in May without complications.

The American Chemical Council reported Domestic HDPE resin production increased by a healthy 12.80 percent in February compared to the same month in 2011.  Resin sales to Pipe and Conduit extruders increased significantly by 19.52 percent in February compared to the same time last year, with extruders of Non-Corrugated/Gas Distribution pipe showing a dramatic increase of 65.05 percent when compared to February 2011.

Townsend’s PMM benchmarks monthly transactional resin prices for PS, PVC, PP Copolymer, PP Homopolymer, PET, LLDPE, LDPE, HDPE Molding and HDPE Extrusion in the US and Canada.  To participate in the benchmark or obtain subscription information please contact Terry Ulery at +1-281-873-8733 Extention 133 or email tulery@townsendsolutions.com.

The recent announcement by Shell to locate its new $2 billion ethane cracker plant in Beaver County, Pennsylvania has most reacting with well-placed enthusiasm at what it will mean for the economy in the region as well as the effects it will have on the downstream plastics industry.  The location is strategically close to the shale gas abundant tri-state region bordering Ohio and Pennsylvania and is only 35 miles from Pittsburg, the city that is quickly laying claim as the capital of shale gas drilling in the Appalachian region.

The American Chemistry Council has estimated that more than 10,000 new permanent jobs in the chemical and supplier industries could result from a cracker located in the region.  Shell estimates an additional 10,000 temporary construction jobs would also be created.   Some estimates claim as much as $15 to $20 billion of new economic incentives could result.

The decision to actually build the plant is still a couple of years away as a land option agreement has just been signed with Horsehead Corporation, who must relocate their zinc production facility currently operating at the preferred site.   Time well spent as Shell continues with an environmental analysis of the site, further design studies, and continued study of the economic feasibility of the project.

Townsend Solutions will be following the project closely as it will undoubtedly have a tremendous effect on the plastics industry.  As a leading global provider of business intelligence for the petrochemical and plastics industry, Townsend is in a unique position to study the downstream economic impact of the shale gas boom and has launched a collaborative market study entitled “The Effects of Shale Gas on the North American Converting Industry.”  The study is slated for publication during the 3rd quarter of 2012.  For more information please contact Frances Davidson at +1-281-873-8733 Extension 120 or email fdavidson@townsendsolutions.com .  Visit our customer portal to download recent industry presentations, technical papers and brochures - http://customer.townsendsolutions.com/

Recent announcements by Shell, Chevron Phillips, Dow and NOVA make it very clear that the polyolefins market in North America will change drastically over the next decade.

The suppliers are banking that the feedstock cost advantage of ethylene from shale-gas-derived ethane will be sustainable and will be the future of the industry, but there are still a lot of questions about what exactly all this means for converters of polyethylene.

Townsend Solutions has a team of research experts dedicated to looking at the impact shale gas will have on the polyethylene industry as they put together Townsend Solutions’ North American Collaborative Market Study: The Effects of Shale Gas on the North American Converting Industry. Some of the research team’s early findings are quite interesting.

The primary effects of the new supply will be felt in the area surrounding the Marcellus shale gas reserve – which will include the Northeastern, Mid-Atlantic and Midwest United States. While there is already a heavy concentration of converters in those areas, the increased PE supply is sure to attract more, and Townsend’s researchers are digging in to discover exactly what that increased competition will mean in terms of everything from PE prices to logistics issues and availability of equipment. Also, beyond the regional impacts, researchers are investigating the potential for inter-material competition, import-export changes and much more.
 
“The recent shale gas discoveries have cast a lot of uncertainty on the North American and global PE markets, and there is great potential for the downstream market,” said David Anderson, Business Director – Global Polyolefin Consulting at Townsend. “We are excited about this study and exploring the implications of potentially less expensive ethylene monomer on the supply of PE polymers and how this will impact plastic converting business growth and the shifting business dynamics surrounding where plastic goods are produced.”

For more information about Townsend Solutions’ North American Collaborative Market Study: The Effects of Shale Gas on the North American Converting Industry, contact Frances Davidson at +1 281 873 8733 or email  fdavidson@townsendsolutions.com.

According to the January edition of Townsend’s Monthly Global EVA Market Intelligence report, US and China have seen positive growth in EVA consumption for 2011.  But, since the peak in July there has been a drop in EVA resin purchasing in other regions of the world, specifically Other Asia Pacific and Central South America.   There was a marked decline in buying interest among customers in the Other Asia Pacific region as customers reviewed their inventories and projections for year end. China is over capacity on encapsulation sheet grades and Townsend market experts are predicting a depletion of stock.  For the most part, prices have declined for all types of EVA in the last half of 2011.   Western Europe has seen a recent decline in the photovoltaics segment but with orders in other markets making up the difference, the demand for EVA has been normal.

Earlier this month PlasticMarketData reported on planned capacity announcements in Asia, including an announcement for a 2013 expansion at Tosoh’s EVA production line at the Nanyo, Yamaguchi Japan plant.  According to a recent statement by Tosoh “they currently have no announced plan for this expansion and the project is currently on hold."  We stand corrected, and apologize for the oversight.

For the latest on global EVA demand, capacity and pricing contact Frances Davidson at +1-281-873-8733 Extension 120 or email fdavidson@townsendsolutions.com.

First in a series of planned Market Intelligence Reports, Townsend’s EVA Global Market Monthly reports on EVA pricing & capacity changes around the world. Covering six key regional and global markets for EVA resin, the monthly intelligence reports cover current market activities, trends & drivers and transactional resin pricing (by %VA content range).

“This report fills a significant gap in EVA market intelligence” states David Anderson, Director of Consulting for Houston based market research firm Townsend Solutions. "Townsend is set to report on monthly pricing, trends and issues affecting growth in EVA markets around the world so our clients can be fully informed by the end of the first week of every month.  This real time reporting is key for EVA buyers, petrochemical producers and other suppliers to the global EVA supply chain."

The EVA market was expected to see "robust" growth of upwards of 10% globally in 2011. This has been stalled by a variety of factors including unexpected slowdowns in key growth areas like solar cell applications. Stay informed with monthly updates! For subscription information and a free sample report contact Frances Davidson at +1-281-873-8733 Extension 120 or email fdavidson@townsendsolutions.com. 

Beginning in February, more than 3,500 European Polyethylene processors will have the opportunity to provide extensive feedback to their resin suppliers regarding product and service offerings via the global market research firm, Townsend Solutions. 

CLASS PE Europe is sponsored every two years by major resin suppliers serving the European plastic processing marketplace. Rich in historical data, this program has evolved over the years to become the industry standard for measuring customer satisfaction in the plastics processing marketplace. Variables impacting survey design and demographic coverage are collaboratively designed by steering committee comprised of representatives from both Townsend and subscribers to the program. This meeting will be held in Frankfurt Germany in early January 2012.

For information on participating, or to launch a CLASS customer satisfaction program for your business contact bmitchell@townsendsolutions.com or call +1-281-873-8733.

According to Townsend's Plastic Market Monthly Report, bucking previous industry predictions of
continuing rising costs, PET resin prices headed downward again after only a slight upturn in September. This is mostly due to lower feedstock costs and lower demand. All indications are that prices will continue to decline for the short term. The PMM’s volume-weighted-average for PET in October decreased 2.9 cents-per-pound, C-PET saw a 3.6 cpp decrease while all other grades, Bottle, A-PET and Wide-Spec, experienced decreases ranging from 2.5 to 2.7 cpp.

Recent increases in PET recycling may have an impact on the virgin resin market in due time. After staying flat for two years, the volume of PET bottles recycled in the U.S. in-creased in 2010, pushing the recycling rate close to 30 percent for the first time since 1996. PET recycling also got a boost from higher sales in the bottle market.

Market sources report Coca-Cola is still trying to sell its PET recycling plant in Spartanburg, S. C., which is currently operating on a limited basis. The plant is a joint venture with United Resource Recovery Corp. Houston-based M&G is scheduled to open a plant in Corpus Christi, Texas sometime in 2014. This plant will have more than 2 billion pounds of annual PET capacity. This venture will make M&G the region’s largest producer of PET.

According to Townsend's Plastic Market Monthly Report, LLDPE resin prices experienced a significant price drop in October. A decrease in ethylene contract prices for the month, plus a wildly fluctuating spot market, coupled with lower demand gave LLDPE resin buyers some welcome relief in October.  The volume-weighted average for all LLDPE resin grades dropped 2.8 cents-per-pound (cpp) in October.  Resin deliveries were virtually unchanged in October compared to September levels, and converters maintained their inventory levels at ten days of supply.

The global heat stabilizer market is expected to have increased growth through 2015.   Heat stabilizers fall into three main categories: Mixed metals (BaZn, CaZn, CdZn), Tin based, and Lead based. Lead based stabilizers were the highest volume in 2007, but due to toxicity and environmental concerns, they are on the decline being replaced by the other types. New developments include safer organic and rare earth stabilizers, but market penetration is slow due to higher cost. In Europe, heat stabilizers have moved from Barium Zinc to Calcium Zinc (BaZn to CaZn). Industry players expect the same transition in North America and other regions of the world.

Per Townsend Solutions, a global consulting firm, heat stabilizers are used to prevent the thermal degradation of certain polymers during periods of exposure to elevated temperatures. The main application for heat stabilizers is to stabilize polyvinylchloride (PVC), derivatives of PVC and blends.

Virtually all rigid and flexible PVC utilizes some type of heat stabilizer, especially extruded PVC to prevent degradation during processing. Extruded PVC is used in Wire and Cable, Film and Sheet, Pipe, Window Frames, and Fencing. Therefore, heat stabilizers are very dependent on the strength of the PVC market.

From the list above, one can see that the extrusion PVC market is closely tied to the residential housing and commercial building market. If we look at the global PVC market in the developed regions like North America and Western Europe where the housing and construction markets have been depressed since the global financial crisis, PVC consumption has been on a steady decline. For example in the US and Canada, the extrusion PVC sales were down nearly 38% from the highs in 2006. Through July 2011 sales of PVC resin for extrusion applications in the US and Canada was 4 billion pounds versus 2006 levels where January to July sales were 7.2 billion pounds.

However, in the developing regions like China, India, and the Middle East, the housing and construction markets continue to grow. China became the largest market for heat stabilizers in 2007, surpassing both North America and Western Europe combined. The region has experienced double digit volume growth for more than a decade.

Townsend publishes a Global Plastics Additives report every three years. The most recent study provides an assessment of 2011 demand and supply, with an outlook to 2016. For more information about Townsend’s market study of Heat Stabilizers, Antiblocking Agents, Antioxidants, Antistatic Agents, Biocides, Chemical Blowing Agents, Coupling Agents, Flame Retardants, Impact Modifiers and PVC Processing Aids, Light Stabilizers, Lubricants/Mold Release Agents, Nucleating/Clarifiying Agents, Organic Peroxides, Plasticizers, Slip Agents, and Additive Producers, please contact Frances at fdavidson@TownsendSolutions.com. 

From new drainage systems for golf courses to the rebuilding of North America’s infrastructure, PE pipe & conduit is experiencing resurgence in growth similar to what was seen in pre-economic crisis times.  In the 2011 Townsend Polyethylene Report, we reported a nearly 21% jump from 2009 – 2010 in PE consumption for the pipe & conduit market for all PE resin types.  About 90% of the market uses HDPE in pipe & conduit applications.  While many other PE markets have retracted somewhat from the remarkable 2010 rebound, during the first half of 2011, HDPE for pipe & conduit is showing continued high growth of over 16% compared to first half of 2010.   The highest growth is in the non-corrugated applications including potable water, gas distribution, industrial/sewage, and conduit.

In the 2002 – 2007 time-frame, HDPE for pipe & conduit applications grew at an average annual growth rate (AAGR) of 8% / year.  Then the economic slow-down of 2008 and 2009 took a huge toll on the HDPE pipe market, falling nearly 30% from 2006.  Now, if the first half of 2011 demand continues at the current pace, 2011 HDPE demand will approach the peaks seen in the 2006 – 2007 period.  Driven by a ever increasing demand for the replacement of decaying utility piping infrastructure and the growing acceptance of HDPE, the market opportunities for HDPE pipe are numerous and sizable.
 

According to the Townsend Plastic Buyers Database, there are about 225 PE pipe manufacturing sites in all of North America.  The major producers of HDPE pipe have changed considerably in the last 10 years due to mergers, acquisitions and divestitures.  Of note:  Advanced Drainage Systems purchased Hancor making it the largest HDPE pipe producer, the Rinker Group divested the plastic pipe and liner operations creating “Polypipe”, Arnco and Dura-Line merged to create A-D Technologies, and USPoly Company, J-M Manufacturing and PW Eagle combined to form JM Eagle.  The Top 5 producers ADS / Hancor, Performance Pipe, JM Eagle, PolyPipe Inc., and A-D Technologies account for 55% of the HDPE pipe market.

Of the suppliers of HDPE resin for pipe, Chevron Phillips has the largest market share, followed by INEOS and Dow Chemical.

Over the last 10 years, we have seen the market shares of ExxonMobil, LyondellBasell and resin sold through distribution grow while Chevron Phillips’ share is lower and the remaining producers have mostly maintained their market shares.


On a global basis, Townsend forecasts the pipe market to have the highest growth of all the major processes through 2015.  This is driven not only by emerging markets like China, India, Middle East and Central and South America “building new” infrastructure, but by the established markets like North America “replacing antiquated” infrastructure.  Townsend’s multi-client report on bi-modal HDPE, an important grade for pipe, is scheduled to publish in October 2011.  For more information regarding any of Townsend’s services including the Townsend Polyethylene Report, Townsend’s Plastic Buyers Database, Townsend’s Plastics Market Monthly (resin pricing) or cost modeling contact Frances Davidson at 281 873 8733 Ext. 120 (fdavidson@townsendsolutions.com) or Peter Callais at  281-873-8733 Ext. 150 or via email at  (petercallais@townsendsolutions.com).

The Brazilian based company, Braskem, has announced their intended acquisition of Dow’s Polypropylene business. This is a deal that is extremely convenient for both companies according to their future strategies. Based on the recently published 2011 Townsend Polypropylene Report, we forecast the North American and Western European markets to grow at only 2.5% and 2.1%, respectively, per year in the next 5 years, well below the forecasted global PP growth rate of 5.0%/year.  However, this acquisition isn’t justified from a market perspective alone.

It’s been some time since Dow signaled that their PP business was not in its future strategy. Low margins, especially in the US, a commodity based product line (non-technology-differentiated) and a necessity of new investments to keep the business growing were some of the reasons for this divestment. As stated by Andrew N. Liveris, Dow's Chairman and Chief Executive Officer recently: “This business has delivered historic margins that do not meet our expectations moving forward and is no longer core to Dow’s strategy. We are shifting our Plastics portfolio from a commodity focus to that of a performance focus. This divestment is directly in line with that strategy, and allows us to continue to focus on our three main priorities: retiring debt, remunerating shareholders and investing in our innovation agenda so that we deliver consistent earnings growth.”

Since 2002, Braskem has had aggressive expansion through acquisitions and strategic alliances, in order to position itself as one of the largest global petrochemical companies. With this acquisition, Braskem becomes the #2 polypropylene producer in North America and gains a foothold in Western Europe, a region that was being served only by a Braskem sales office. Also with this acquisition, the company acquired an amazing platform of innovative PP products such as the INSPIRE™ Performance Polymers. It’s important to mention that the catalyst and technology businesses are not part of this deal and are being kept by Dow.  Braskem continued to generate good margins with its operations globally, generating EBITDA in 1Q2011 US$ 570 MM.  At this acquisition price (US$ 340 MM, 6.7x PP Dow EBITDA) neither its cash flow nor its “Investment Grade” will be affected.  When this purchase is final, Braskem will have a global position in the polypropylene market and will continue to strengthen its position in polyethylene with their new investment in Mexico with Idesa.

Could this be the first sign of a growing trend?  As we see more announcements of investments in the US and Canada due to increased availability of shale gas, Townsend believes this will create new mergers and acquisitions opportunities around the world as companies look to better position themselves in the global polyolefins marketplace.

For more information on the polypropylene industry or to obtain a copy of our newly released 2011 North American and Western European Polypropylene Market Study reports please contact Roberto Ribeiro at +1-281-873-8733 Extension 155 or email rribeiro@townsendsolutions.com .

Following a decline of -7.1% in 2009, the consumption of Polypropylene in Central/Eastern Europe bounced back with an amazing growth of 21.5% in 2010, on account of higher domestic and export demand for plastic products. While the area was hit hard by the global financial crisis in 2009, strong GDP growth averaging 4.1%/year is projected for the next five years, sustaining. This growth will be supported by (1) ongoing industrialization and infrastructure development, (2) strong growth in consumer products, and (3) Russia’s major investment in new oriented PP film lines.

In terms of capacity, several new PP plants have been brought on-stream in this region over the past few years and six new plants are currently being planned for the region and are scheduled to come on-stream during 2011 to 2015. New plants are planned for Russia, Uzbekistan and Kazakhstan. With these capacity additions, the region is expected to have a net surplus of PP, with net imports dropping from 995 kt in 2010 to 867 kt by 2015. Of note, CEE will move from to a net import position in 2010 of 419 kt to a balanced foreign trade position and be a net exporter of 5 kt in 2015.

Townsend’s 2011 Central & Eastern Europe Polypropylene Market Study is available now. To obtain a copy of this report please contact Frances Davidson at +1-281-873-8733 Extension 120 or email fdavidson@townsendsolutions.com .

Newly published research by Townsend Solutions reports that North America’s HDPE/LLDPE/Swing PE consumption is projected to increase from 12,230 kilotonnes in 2010 to 14,857 kilotonnes in 2015. At the same time, average HDPE/LLDPE/Swing PE capacity for the region is forecast to increase from 15,541 kilotonnes in 2010 to 15,866 kilotonnes in 2015. This means that, in the absence of further capacity announcements, the consumption/capacity ratio for low pressure PE in North America will increase from 78.7% in 2010 to 93.6% in 2015.



The 2011 Townsend Annual Polyethylene Report detailing global consumption, capacity and trade is available now.  To obtain a copy of this report please contact Peter Callais at +1-281-873-8733 Extension 150 or email petercallais@townsendsolutions.com.

Polystyrene resin prices fell in June as feedstock prices dipped but the declines were hampered a bit by tight supply caused by several plant outages in May and June.

Both ethylene and benzene contract prices were down in June. The volume-weighted-average for Polystyrene Crystal resin grades dropped 2.2 cents-per-pound (CPP), while the volume-weighted -average for HIPS resin grades fell 2.1 cpp in June.

More than three-quarters of the Polystyrene resin buyers reporting their prices to the PMM (Plastic Market Monthly) reported lower prices in June.  

PMM data providers are projecting a 2.8 cpp decline in the volume-weighted-average price for Crystal Polystyrene resin in July and a 2.0 cpp decrease in HIPS resin prices.

Townsend's PMM benchmarks monthly transactional resin prices for PS, PVC, PP Copolymer, PP Homopolymer, PET, LLDPE, LDPE, HDPE Molding and HDPE Extrusion in the US and Canada.  To participate in the benchmark or obtain subscription information please contact Terry Ulery at +1-281-873-8733 Extension 133 or email to tulery@townsendsolutions.com.

According to the recently published Townsend Polypropylene Report on Global Consumption, Capacity and Trade, polypropylene (PP) consumption increased 7.3% in the US, Canada and Mexico in 2010, the first year since 2004 that consumption has grown. Although consumption was dramatically reduced in 2008/2009, the strong recovery can be attributed to the stimulus package for autos and appliances and restocking of the supply chain which was de-inventoried during the recession. Mexico’s growth was 13.2%, nearly double its more developed neighbors.  Townsend forecasts modest growth in PP consumption at about 2.5% AAGR in the countries comprising NAFTA for the period 2010 to 2015, with the strongest growth in the automotive, sheet and non-woven segments.

 

For more  resin-specific consumption and growth forecast data by world region, process, market or application segment please contact us via email or call +1-281-873-8733.

PVC resin prices in the US and Canada continue to gradually push upward as Ethylene prices climb higher and demand strengthens in an already tight PVC market.

According to Townsend’s Plastic Market Monthly, 90% of buyers who reported their April pricing to our market analysts experienced increases in the prices they paid for PVC resin, with the average price for all PVC resin grades climbing 2.8 cents per pound in April to 46.8 cpp. 

Traditionally, exports have taken up the slack in sales resulting from sluggish demand for PVC in the US construction and housing industry, which accounts for three-quarters of all domestic PVC demand.  Seasonal demand in the domestic PVC market is expected to rebound causing cuts in export production which will further tighten the market and help fuel price increases.

The crisis in Japan also had a significant impact on US PVC supply/demand.  Imports from Japan plummeted, as expected, due to plant outages caused by the earthquake and tsunamis.  Three PVC plants, with a combined capacity of 818,000 mt/year, representing 41% of Japan’s total PVC production, shut down.  Demand for US resin from countries normally importing from Japan is causing shortages to some US buyers. 

At present time, Japan is still dealing with rolling blackouts and the looming summer power usage restrictions, which will likely disrupt pipe factory operations; however, most plants are expected to resume operations by the end of May. Taking into account the situation in Japan coupled with high oil prices, PVC resin prices appear likely to continue their upward climb, at least in the immediate future.   Email Terry to receive a sample PVC Pricing Report.

Ethylene contract prices climbed higher again in April, settling up another 3.5 cpp for the month at 57.25 cpp, with more increases expected in May.

Any relief in sight? Hopefully. Crude oil prices did dip in the first week of May, falling below $100 barrel for the first time in weeks. There is also a lot of talk among ethylene producers about adding capacity in the next few years. The recent discovery of large quantities of natural gas in shale rock throughout North America is providing a new, less expensive option for ethylene feedstock and production.

Last month, Dow Chemical, Chevron Phillips Chemical, Nova Chemicals and Westlake Chemical all announced plans to increase North American ethylene production. LyondellBasell also threw its hat into the ring in early May with the announcement by CEO Jim Gallogly the company is looking at expansions at existing plants, possibly in Channelview and La Porte, Texas, in the next few years that will increase ethylene output by about 500 million pounds a year. The company is also reportedly considering the construction of a cracker in a joint venture with other producers.

Propylene monomer prices are expected to reach record high levels in April – rising as much as 20% in one month – and that increase and possibly more is expected to be passed on to Polypropylene buyers very quickly. Supplier nomination letters are coming with a flurry, announcing double-digit increases, mid-month increases and pricing levels that have never been seen before in the Polypropylene market.

 

Tight propylene supply is to blame after a large number of first quarter 2011 refinery turnarounds. More than 20 US refineries were offline for at least some time during the first three months 2011. High crude oil prices also play into the mix. Not surprisingly, demand for PP has dropped and some processors are looking into material substitutions, but with long approval processes and higher polyolefin cost across the board, many are simply stuck paying the higher prices.

 

Savvy resin buyers monitor real transactional pricing. Townsend’s Plastic Market Monthly (PMM) is the only pricing publication based on real transactional prices reported directly by resin buyers and covers 11 unique PP resin grades. Each monthly report contains historical pricing data, pricing projections for the upcoming month, monomer and feedstock pricing, current economic data affecting the markets, insight on inventory levels, and news about current supply, demand and market conditions. In exchange for transactional data, qualified PMM subscribers receive preferential pricing on annual subscriptions and access to more than 20 years of historical price data.  Email Sue Thackeray to receive the April PP Pricing Reports.

Newly published research by Townsend Solutions reports that global EVA consumption is forecast to grow at  an equivalent AAGR of 5.7% through 2014 to almost 4,400 KT, significantly higher than global GDP growth rates. Solar panel encapsulant film and solar battery sheet sealant markets are fueling this high growth.

According to David Anderson, Director of Townsend’s Global Polyolefins Consulting Practice, “Solar encapsulant film applications will exhibit growth of about 25%/year and solar battery sheet sealant markets will exhibit about 20%/year growth in applications using HEVA (>25% VA content resins) and MEVA (17 – 25% VA content resins). These two markets alone are forecast to consume 20% additional MEVA and HEVA’s over the 5 year period. The forecast for MEVA content resins (17-25% VA content) is also strong in other applications like the EVA foam and footwear applications.”

Of the new EVA capacity additions currently planned over the next 5 year period, about 39% of this volume will be located in Middle East/Africa region, 33.5% in Other Asia/Pacific, 16.9% in China and 12.4% in South Korea. South Korea, India, Other Asia/Pacific, China and Japan are forecast to have total EVA growth rates of > 7.0%/year which is well above the average total EVA global growth rate of 5.7%/year.

These global growth projections could be exceeded if sudden oil price escalation multiplies the value of solar generated electricity and the world economies increase their focus to invest in clean energy. The key to sustaining overall EVA growth will be in how the petrochemical industry responds in meeting demand for HEVA’s and MEVA’s. To meet the growing demand of MEVA and HEVA, autoclave capacity might be rationalized in favor of tubular processes; however, this comes with downstream pelletizing and handling investments. In the film and non-packaging markets, there is evidence that HAO mLLDPE and Plastomers are penetrating markets that use VLEVA (1 – 6% VA content) and LEVA (7 – 16%) markets. No matter how you look at it, there is a “bright” future for EVA.

To learn more about Townsend reports on global EVA, HDPE, LDPE, LLDPE, mLLDPE, C6, C8 or PP markets please contact Frances Davidson at fdavidson@townsendsolutions.com

Beginning in March, more than 3000 European Polypropylene processors will have the opportunity to provide extensive feedback to their resin suppliers regarding product and service offerings via the global market research firm, Townsend Solutions.

Townsend is launching its 2011 Europe Polypropylene Customer Satisfaction & Loyalty Survey (CLASS). Sponsored by major polymer suppliers including Borealis, INEOS, LyondellBasell and SABIC, Townsend’s CLASS programs are considered the industry standard for independent, third-party perspective and insight into the needs and expectations of the plastic processing community.

“Representing over 9500 KT of annual polypropylene consumption in 2010, Europe (Western, Central & Eastern), is one of the largest PP markets in the world,” stated David Anderson, Director of Global Consulting – Polyolefin Solutions for Townsend. “The economic challenges of the past two years have dramatically affected several application segments for polyolefins, with European markets being among the worst hit. Customer requirements and expectations are changing, and as a result raw material suppliers are rethinking their service strategies. Participating in this survey is an unparalleled opportunity for PP buyers to provide candid opinions and valued feedback to their raw material suppliers.”

Townsend will explore plastic processors’ changing priorities and their satisfaction with the performance of resin suppliers on more than 15 key issues ranging from product performance to sustainability. For more information on Townsend CLASS programs, or to schedule a convenient appointment to participate in the survey, please contact Ms. Barbara Mitchell, Director of Customer Research for Townsend at +1-281-873-8733 Extension 173 or email bmitchell@townsendsolutions.com .

Further PET price increases are on the way due to rising feedstock costs, but at least they have shrunk. Eastman just announced that the December 1 increase of 6.0 cents per pound (cpp) has been reduced to 4.0 cpp. The increase brings the total producer price announcements to 30.0 cpp for the year (see red bars).

Based on Townsend’s survey of North American PET resin producers, 16.0 cents of the total 30.0 cents have been implemented from January to November 2010 (see turquoise line). During the same time frame, PET resin buyers have indicated that they have realized a 9.0 cpp increase thus far on resin delivered from January to November (see blue line). Buyers indicated that they expect to realize more of November’s increase with December deliveries.

To begin the new year, Eastman announced a 3.0 cpp increase to take effect January 1, 2011. Feedstock prices for MEG, PX and PTA are continuing to rise significantly, due to higher than normal demand by polyester fiber producers. Sources indicated that the price of cotton rose to unprecedented levels, therefore creating more demand for polyester fiber, as a blend in textile manufacturing.

For more information about Townsend’s pricing services please contact Frances at fmoore-jones@TownsendSolutions.com

Braskem may be the first North American polypropylene supplier to announce a December price increase for resin.  According to their announcement,  Braskem’s polypropylene resins will increase by 3.0 cents per pound, effective December 1.

Spot PP resin prices have increased throughout the month of November, as supply of generic resin has tightened.  Spot prices may continue to rise as domestic demand has been strong and exports continue.

Braskem ranks as one of the top ten polypropylene suppliers in the Americas.  The chart illustrates market share for the top polypropylene suppliers, based on a survey of over 5000 resin processing plants in North America, Central America & South America. 

Townsend maintains a global database of buyers of all types of thermoplastics. To contact Townsend, please email Frances at fmoore-jones@TownsendSolutions.com.

Morgan Stanley’s outlook of a Petrochemicals Supercycle is but ONE possible scenario in an industry that is event driven. And, it is virtually impossible to predict all the events. In North America alone, the return of natural gas prices to about $4/MMBtu is an event that seemed impossible from 2004 to 2008. But now, natural gas prices are expected to remain low and stable due to increased supply via new shale-gas recovery methods, giving ethylene crackers inexpensive feedstock. That event alone is likely to attract investment for new cracker units.

Here’s a headline from today’s ACC newsletter, that is a game-changer for ethylene demand. “Unilever has created a set of sustainability goals, following Procter & Gamble's announcement, to replace 25% of its petroleum-based plastics with renewable materials by 2020.” Unilever added that PVC use would be eliminated by 2012 or 2013. Other consumer product companies have made similar announcements; if realized, the changes point to lower demand for ethylene-derived plastics.

Townsend’s research of the polyolefins markets forecasts that resin plants would be running grossly under capacity levels over the next four years, therefore requiring far less ethylene than their stated capacities imply. Townsend’s research in early 2010 shows that by 2014, if all planned additions were on target, polyethylene plants around the globe would run at an average of 70% of capacity. Similarly, by 2014, polypropylene plants would run at an average of 78% of capacity.

Townsend will re-evaluate supply and demand of polyethylene and polypropylene in early 2011 to produce new projections out to 2015.

Polyethylene prices are influenced by ethylene prices, but the supply-demand balance always trumps feedstock prices. Presently, demand for polyethylene resin in the United States and Canada is strong. Through September, HDPE domestic sales are up 8.35% compared to last year,  LDPE domestic sales are up 5.00%, and LLDPE domestic sales are up 6.58%.  Sales are keeping pace with production thus far this year and in the case of LDPE, sales have exceeded production by 1.08%.

This year is a good example of polyethylene price increases outpacing ethylene price changes. For the year, through October, ethylene contract prices have lost 0.25 cents per pound (cpp), while PE resin prices have allegedly gained 9.0 cpp during this same time frame. Townsend’s Plastic Market Monthly survey of resin converters did not see an increase as large as nine cents, yet the PE increases definitely outpaced ethylene’s.

Based on Townsend’s buyer survey, through October HDPE Extrusion resin prices were up 0.8 cpp for the year, HDPE Molding resin prices were up 3.5 cpp , LDPE resin prices were up 2.6 cpp and LLDPE resin prices were up 4.4 cpp. These gains would imply that PE resin price increases were far exceeding that of ethylene. Remember that ethylene prices have shrunk 0.25 cpp during this same time period.

North America is not expected to have an oversupply of polyethylene in the coming years. According to Townsend’s PE consultants, capacity at North American PE plants sat at 19.589 million tonnes in 2009 and is projected to grow to 20.339 million tonnes by the end of 2012, based on producer’s announced plant changes or additions. Operating rates are expected to average around 85% or higher over the next five years. To keep margins at sustainable rates, producers of polyethylene are expected to continue monitoring their production to match demand.  A steep run-up in prices would occur if several plants shutdown unexpectedly.

For more information about Townsend’s benchmarks of prices, capacity, or consumption, please contact Frances at fmoore-jones@TownsendSolutions.com.

China has rebounded from the 2008 economic crisis and experienced a 12% surge in PE growth, with more moderate growth projected over the next five years. Domestic demand for commodity plastic is the main driver of China’s PE consumption with film applications topping the list with 57.5% of total PE consumption. The film fabrication process is used to make stretch wrap, shrink films, bags, sacks, food packaging and many other multi-gauge films used in China’s consumer market.


China is continuing to increase its use of recycled or reclaimed PE resins in place of virgin PE resins (HDPE and LLDPE) in the film markets for economic and cost reasons. It is also expected to enforce bans on the use of some polyolefins in significant PE applications. This move toward more environmentally friendly legislation is the main reason for the slower than expected growth in China’s PE market.

LLDPE consumption for film applications is projected to grow at 4.3% per year between 2009 and 2014.

To learn more about global polyethylene markets please contact David Anderson at danderson@TownsendSolutions.com.

Dow has lead the way, issuing a December price increase for all its polyethylene resins sold in the US. Prices have been nominated to increase 5.0 cents per pound (cpp) on December 1, 2010. Dow issued the price increase on October 20.

December resin price increases used to be rare, as this was a time when some resin processing plants shut down for long holiday breaks. But now, they seem to be the norm. The last two years, price increase announcements have “begun the year” a month early, taking effect in December as opposed to January. It’s kind of like the holiday lights going up earlier and earlier every year. Not only do retailers want your dollars, but commodity producers do too.

Polyethylene resin producers are continuing to push for a 4.0 cpp increase, effective October 1, while resin processors continue to resist. At least some things never change!

Prices, benchmarked in Townsend’s Plastic Market Monthly reports, showed about a 3.0 cpp increase in September, on average with flat to downward pressure in October. For example, the average price for HDPE Large Part Blow Molding Grade Resin was 59.9 cpp in September with a projected October price of 58.8 cpp. LLDPE Octene Liner Resin was 72.6 cpp in September, on average, with flat prices projected for October.

To learn more about Townsend’s monthly price reports or consulting services, please contact Frances at fmoore-jones@TownsendSolutions.com.

On October 15, 2010, Eastman announced that it would increase prices for all of its clear PET resin. The increase of 9.0 cents per pound (cpp) would take effect on November 1, 2010 throughout the US, Mexico and Canada. The increase is being announced to cover anticipated raw material price increases.

This may be the biggest price increase ever issued within the PET resin industry. I can’t remember one this big.

The November 9.0 cpp price increase nomination, follows a 2.0 cpp October nomination, as well as a 3.0 cpp September nomination. Townsend surveyed buyers and found resin transaction prices for bottle-grade PET resin moved up 1.6 cpp, on average, in September, with prices ranging from 67.0 to 79.0 cpp. Buyers projected prices would move up another 1.5 cpp in October, with a volume-weighted-average price of 78.1 cpp.

Townsend publishes resin transaction prices for C-PET, A-PET, and Widespec PET resin as well, at the beginning of each month. To inquire about Townsend’s PET monthly reports, please contact Frances at fmoore-jones@TownsendSolutions.com.

On September 1, 2010, Dow announced that it would increase the price for all polyethylene resins by 5.0 cents per pound (cents per pound), effective October 1st. The September increase of 4.0 cpp remains in place, for a total potential increase of 9.0 cpp for PE resins. Other PE resin producers are likely to follow as Dow is one of the leaders in the PE market. Dow has about 17% market share of Direct Sales to US/Canada resin converters and compounders.

Per sources, the demand for polyethylene has remained strong in August while supply has tightened. Therefore, supply-demand fundamentals seem to be the main reason for the price increases, as raw material costs are projected to fall for the remainder of the year. Ethylene contract prices remain unsettled for both July and August.

The Plastic Market Monthly is tracking price movement closely in August as it receives resin prices and delivery volumes from PE buyers throughout the US and Canada. To find out more about participating in the monthly benchmarks and receiving transaction prices by grade, please contact Frances at fmoore-jones@TownsendSolutions.com.

On August 25, both Braskem and LyondellBasell Industries Group of Companies issued a price increase for all polypropylene resins sold in North America. The two companies announced that PP contract resin prices will increase 5.0 cents per pound (cpp), effective September 1, 2010. This increase is in addition to the August increases of 3.0 cpp for Braskem resin and 4.0 cpp for LBI.

In August, polypropylene producers have been seeking to increase margins beyond the 2.0 cpp propylene monomer increase. Propylene monomer contract prices in August are 57.5 cpp, up from 55.5 cpp in July.

According to the American Chemistry Council’s preliminary numbers, total North American sales of PP resins in July exceeded June’s and producers drew down inventory. Domestic resin sales were 1.523 billion pounds in July versus 1.398 billion in June – up 9%. Exports were down, 101 million pounds in July versus 131 million in June. And, production in July was at 1.481 billion pounds versus 1.416 in June.

Transaction prices from the Plastic Market Monthly survey of resin converters reported the volume-weighted-average price of all PP Homopolymer Resin Grades at 65.3 cpp in July. For PP Copolymer Resin Grades, the average was 74.3 cpp in July. Transaction prices for August will be published on September 9. To find out more about the Plastic Market Monthly benchmarking service please contact Frances at fmoore-jones@TownsendSolutions.com.

In step with producers of other ethylene-based resins, one major polystyrene producer announced a price increase for resin. TOTAL announced that all polystyrene resin contracts will increase by 4.0 cents per pound (cpp), effective September 1, 2010. Both polyethylene and PET producers have price increases announced for September of 5.0 cpp and 3.0 cpp, respectively.

Polystyrene producer TOTAL sited rising raw material cost increases as the major reason for the increase, so they must be anticipating increases in September. For August, ethylene and benzene contract prices have not yet settled. For ethylene the last contract settlement was in June at 39.5 cpp. Spot ethylene prices in August have been 33.0 to 38.0 cpp, up four cents from July levels, but similar to June spot ethylene prices of 34.0 to 37.0 cpp. Not sure where ethylene prices will settle, but it could be a two-month settlement. Benzene contract prices are reportedly $2.79 per gallon for August, down from $2.82 per gallon in July, yet that price is unconfirmed.

According to the Plastic Market Monthly publication average prices for Crystal PS were 62.6 cpp in July and HIPS were 70.8 cpp. August price benchmarks will be published on September 9, based on a survey of polystyrene resin converters. To find out more about the monthly benchmarking service, please contact Frances at fmoore-jones@TownsendSolutions.com. 

Eastman Chemical Company is the first to announce a price increase of 3.0 cents per pound (cpp) on all clear PET resin products. Eastman cited the following products for price increases: EASTMAN™ PET, EASTMAN AQUA™ PET, ParaStar™ PET, and HEATWAVE™ Polymer formulations for the NAFTA region.

Eastman indicated that the increase is necessary due to the rising oil, energy and distribution costs that the industry is experiencing.

Online prices for Eastman’s A-PET resin, ParaStar 2400, are being offered at 57.5 cpp Ex-Works Columbia, SC plant, for shipment the week of August 23 and August 30.  Shipments during the weeks of Sep 6, 13 and 20 are forward priced at 55.6 cpp, plus the cost of delivery.

Townsend publishes monthly benchmarks of delivered resin prices, based on a survey of resin buyers in the US and Canada. To receive a sample copy and find out more, please contact Frances at fmoore-jones@TownsendSolutions.com.

According to the recently published Townsend Annual Polyethylene Report on Global Consumption, Capacity & Trade, the United States, Canada and Mexico each experienced declines in total PE consumption in 2009, resulting in a -2.8% overall growth rate for this region. Demand for all three resin type, HDPE, LDPE and LLDPE declined in 2009. For the U.S. and Canada, the global financial crisis and collapse of the automotive markets were the main contributors to the decline in consumption.  Mexico, with the largest negative growth rate of -6.1%, was caught in the downturn as part of the NAFTA triumvirate while being a supplying base of products to the USA.

Despite this decline in growth, North American converters are continuing to “innovate” by developing new markets for their films using new specialty constructions and pursuing smaller potential markets. This market strategy is predicted to result in a “re-bound” in PE consumption with moderate growth, at a rate of 3.3% AGR, which is still below the world average growth rate of 3.9%/year.

For resin-specific consumption and growth forecast data by process, market or application segment please contact Townsend by e-mail or call +1-281-873-8733.

The 2010 Polyethylene Annual Report, published in August by plastics consultancy Townsend Solutions, forecasts that most Middle East countries, particularly Turkey, Saudi Arabia, Pakistan and Egypt, will continue to experience strong growth in PE consumption. Townsend is projecting a 6.5% AAGR in PE through 2014, which is well above the world-average PE growth rate of 3.9%/year.  Only India has a projected rate higher than the Middle East/Africa region.

Turkey, with the highest projected annual growth rate of 9.5%, has the most sophisticated plastics processing industry in the region. Turkey processors supply not only domestic demand but export significant amounts to other Middle East countries and Europe. However, Turkey’s PE resin production capacity is, in contrast, limited to less than 5% of the region’s capacity with no additional increases announced.

“Political and socioeconomic factors continue to have a strong affect on growth rates” stated David Anderson, Director of Polyolefins Consulting for Townsend. “Saudi Arabia, with a 7.8% AAGR, has a rapidly growing base of PE processors supported by major new investments in PE resin capacity, rapid increases in capital, cheap energy, and government industrialization policies. LLDPE consumption in Iran is projected to grow at the highest rate of the three resins, 6.9% per year, due mainly to large infrastructure developments and expansion projects. Pipe and conduit applications represent the highest growth rate segment in the Middle East/Africa region.”

The Middle East/Africa region will account for 32.0% of the new capacity additions globally within the 2010-2014 timeframe. Townsend projects that by 2014 the Middle East region will be net exporting over 6.8 million tonnes per year of PE to world markets including Western Europe, China, North America and India.

Townsend’s Annual Polyethylene & Polypropylene Reports provide detailed consumption, capacity and trade for nine major world regions with consumption data provided to the subprocess/market/application level by resin type. For more information or on-line access to our Global Polyolefin Database contact Townsend by e-mail or call +1-281-873-8733.

Ineos announced a 2.0 cents per pound (cpp) price increase to take effect August 1 for polypropylene resin deliveries in US and Canada. Some market sources expect other suppliers will follow with similar price increase announcements, as they site low PP resin supply and rising demand.

According to the American Chemistry Council, PP supplier inventory levels were low at the end of June, giving rise to climbing spot PP resin prices in July. Spot PP Copolymer prices are rising at the high end, with prices ranging from 63.0 cpp to 74.0 cpp. ... << MORE >>

July brought another month of constant negotiations between US/Canada polyethylene suppliers and buyers. PE suppliers were looking to hold resin prices steady while buyers were pushing for a discount. Market sources indicate that the two have settled somewhere in the middle with an average 2.0 cents per pound decrease for July HDPE and LLDPE resin deliveries. And, a flat price for July LDPE resin deliveries.

Based on last month’s Plastic Market Monthly reports, the price changes would put July resin prices at an average price of: 59.8 cpp across all HDPE molding ... << MORE >>

Demand for US & Canada PET resin traditionally peaks during the hot summer months when Americans and Canadians are using more disposable bottles, cups, and food packaging as they spend time outdoors and traveling. So, during this time, PET resin prices usually peak. Not this year.

Sources indicate that demand in June is down 8% compared to a year ago and July’s might be down as much as 15%. Low demand, coupled with more PET resin lines coming on stream and lower feedstock prices have pushed market prices down.
... << MORE >>

Just as LyondellBasell was a pioneer for direct polyolefin producer online sales via its Alastian website, Eastman will be the first PET resin producer to sell PET resin directly online. The Eastman Value Xpress service recently went live with offers for APET Sheet Resin within the United States.

Railcar quantities of their Parastar 2400 PET Resin were being offered at a cost of 58.2 cents per pound Ex-Works for July 12th delivery and 59.1 cpp for July 19 delivery. Future deliveries are currently being offered at 57.5 cpp for July 26 delivery, ... << MORE >>

Although contract buyers are looking for further price relief on polyethylene resins in July, PE producers insist price reductions are over. They already gave up the majority of their price increases over the last two months.

Following a decrease in ethylene contract prices, polyethylene producers in the US reduced the price of PE resins in May and June. LLDPE & HDPE contract resin prices moved down 6.0 cents per pound in both May and June. Likewise, LDPE resin prices moved down 4.0 cpp in May and in June. In June, suppliers had ... << MORE >>

India’s consumption of LLDPE is projected to grow at 10.9%/year between 2009 and 2014, which is the highest growth rate of all three PE polymers and above the overall 9.6%/year growth rate for PE. Downstream markets report that it will continue to be a major blending partner among LDPE, LLDPE & HDPE resins for film. 

Forecasted growth rates of 11.3%/year between 2009 and 2014 in the LLDPE film market, especially in the film non-food packaging and non-packaging segments, will create more opportunities for HAO & mLLDPE resins due to enhanced performance requirements.

Townsend's Specialty Global PE report provides unprecedented detail on the global market for C6/C8 LLDPE and mLLDPE, covering 96 market segments from 144 countries.  Contact Townsend for more information. ..

With feedstock shortages apparent and demand for engineering resins healthy, SABIC Innovative Plastics has announced price increases for its engineering resin contracts to offset higher feedstock costs. Prices in US and Canada are to increase 11.0 cents per pound, effective July 6, 2010 for Geloy, Valox, Noryl, Noryl GRX, LNP and LNP compounds. 

Geloy, an Acrylic-Styrene-Acrylonitrlie resin, is used most often in exterior transportation parts and medicalware. Townsend's Plastic Buyer Database has plant level detail on over 120 buyers of ASA resin including key contacts and markets served.

... << MORE >>

On 7/1/2010, public disclosures reported that Ametek, Inc. acquired Waterbury, CT., based Haydon Enterprises, Inc. for $270 million in cash. The acquisition is expected to add approximately $0.05 per diluted share to 2010 earnings. Haydon operates plants in CT, Hollis and Milford, NH., and Changzhou, China.  Haydon is a leader in linear actuators and lead screw assemblies for the medical, industrial, aerospace and semiconductor industries with sales of around $85 million. Company officials reported that acquisition complements its existing technical motor business. Haydon will join Ametek's Electromechanical Group.    This is a Tarnell Portfolio News Item.

 Poland-based Anwil has declared force majeure on PVC and caustic soda after a breakdown of electrolysis installation in the chlorine and caustic soda part of the plant complex. The plant produces PVC, VCM and caustic soda.

Anwil estimates that it will take about 5 months to recover from the incident. Meanwhile, other parts of the plant will continue operations including its PVC Compounds Complex, according to Anwil. Raw materials for the PVC plant will be sourced externally or from its subsidiary plant Spolana.

Anwil and its subsidiaray, Spolana in the Czech Republic, together are the largest PVC resin producers in Central & East Europe with 470 kilotonnes capacity per year. The Anwil plant has a capacity of 340 kilotonnes per year.

According to Townsend’s database of plastic buyers, West, Central & East Europe plastic processors consume 4859 kilotonnes of PVC resin or compound per year. This means, that Anwil and Spolana supply about 10% of the market. To obtain a list and plant details of PVC resin buyers from Europe, Middle East, Africa, India or other parts of the globe, contact Townsend about its Plastic Buyer Database.

The European plastic pipe & profile industry accounts for 14% of all plastic resin consumed in the region. And this is a big industry. Annual resin consumption in Western Europe is 32 million tonnes and Central Eastern & European resin converters use another 6.6 million tones per year. Pipe & profile producers in the whole of Europe account for conversion of 4.8 million tones of resin annually.

European Plastics News in association with Townsend Solutions published it’s list of leading European manufacturers of plastic pipes and profiles. You can see the report ... << MORE >>

June polypropylene contract prices fell 8.0 cents per pound (cpp) in US and Canada, following the 8.0 cpp drop in polymer-grade propylene contracts.

Spot polypropylene prices continued to fall throughout the first two weeks in June and resin found its way to export markets, depleting excess supply. By mid-June, sources indicated that spot polypropylene prices traded a penny higher and several suppliers moved spot price offers up accordingly. With spot prices rising, this could mean level to rising prices for July's polypropylene contract markets. With polymer-grade propylene contract prices unsettled, it's tough to ... << MORE >>

Buyers and sellers of polyethylene still have not reached a settlement for June contract prices. Polyethylene producers indicate that June prices should move down 2.0 cents per pound (cpp) for LDPE and down 4.0 cpp for LLDPE and HDPE. Polyethylene buyers are looking for a bigger price break, in the range of 6.0 to 8.0 cpp lower for June deliveries.

Buyers are looking to ample supply and falling ethylene contract and spot prices to support their case for lower polyethylene resin prices. The American Chemistry Council indicated that inventory levels at polyethylene ... << MORE >>

Polycarbonate producer SABIC Innovative Plastics announced a 16.0 cents per pound increase to take effect July 6, 2010 in the US and Canada for it's polycarbonate resin brands Lexan, Cycoloy, Xenoy, Xylex and Cycolac. Other producers may follow as raw material costs have gone up because of tight supply and high demand.

Global polycarbonate producers include SABIC Innovative Plastics, Bayer, Styron, Policarbonatos do Brasil, Mitsubishi Chemical Corp, Idemitsu Petrochemical, Asahi Kasei Chemicals Corp, Sumitomo Dow Ltd, Teijin Chemicals, Carbolux SpA, and LG Dow Polycarbonate.

Major end-use markets for polycarbonate resin include Automotive, Computer/Business Equipment/Electrical, Medical/Optical, Appliances, Sheet/Film and Optical Media.

Japan's 2009 PE consumption totaled 2,541 kilotonnes in 2009, down another -8.4% as was experienced from 2007 to 2008. This translates to a five-year average annual growth rate (AAGR) of -3.2%/year from 2004 through 2009. During this same timeframe, real GDP growth was -0.1%. The previous five-year average annual growth rate (AAGR) was -1.3%/year from 2003 through 2008. However, the forecast does look brighter. Recent research by Townsend forecasts growth of 2.4%/year for the 2009-2014 period, placing Japan slightly ahead of Western Europe, but it is still the weakest economy in the Asia/Pacific and Indian regions. Projected LLDPE growth of 3.8%/year for all the major process segments is expected as mLLDPE gains markets share of C4 LLDPE and low VA% content EVA markets. Consumption in several consumer products sectors is expected to decline because of competition from increased PE product imports from Other Asia/Pacific countries.

A consequence of this low growth rate for PE consumption is an overall minimal investment in additional production capacity. Currently, only 60 KT of additional gas phase LLDPE capacity in Japan has been announced for the 2009-2014 time period.

Japan is expected to remain a net exporter of PE resin. However, while net exports of HDPE/LLDPE are projected to decline through 2014, exports of LDPE-EVA are expected to increase. Exports will be primarily to China and Other Asia/Pacific countries. As Middle East/Africa capacity additions come into service and products are shipped to China and Other Asia/Pacific countries, Japan’s traditional export outlets will be significantly affected.

North American buyers and sellers are indicating that polyethylene contract prices are down in May. Prices have fallen 3.0 to 6.0 cents per pound from April to May. In April, Townsend's Plastic Market Monthly  reported LDPE Liner grade resin prices averaged 68.7 cents per pound, LLDPE Octene Liner grade resin prices averaged 80.3 cents per pound and HDPE Molding grade resins averaged 71.3 cents per pound.

Polyethylene resin buyers are indicating lower prices in June. The amount is not yet settled known, but ranges between flat and down 6.0 cents per pound ... << MORE >>