Volume Resin Prices Rise: Key Drivers and Market Outlook

Photo: Biaglo GmbH

Nearly all major volume resins are trending upward, with suppliers maintaining pricing leverage in the short term. The upward momentum is driven by global plant outages—both scheduled and unscheduled—tightening feedstock and resin availability, and a post‑COVID‑19 “catch‑up” demand surge in the second quarter.

The views of purchasing consultants from Resin Technology, Inc. (RTi), senior editors from PetroChemWire (PCW), and CEO Michael Greenberg of The Plastics Exchange provide the analysis.

PE Prices Flat to Higher

Polyethylene (PE) prices remained flat in November, but market participants anticipate a December 5¢/lb increase. The expected rise is driven by a force‑majeure outage at Braskem‑Idesa—Mexico’s largest LDPE and HDPE producer—and by global LDPE/HDPE price spikes caused by Iranian production issues and reduced North American exports.

Mike Burns, RTi’s VP of PE markets, noted that while a buyer’s market could have yielded a 5¢/lb drop, “the 19¢/lb premium suppliers gained up until November will be hard to hold onto,” echoing senior editor David Barry of PCW. Barry added that spot‑market deals were attractive, yet inventory recovery slowed demand.

Greenberg observed that spot buyers were holding out for a substantial price drop that did not materialize: “Processors have been banking on major relief to refill coffers, but the discounts have been too modest to spur restocking.”

PP Prices Rebound

Polypropylene (PP) prices edged up 5¢/lb in November, combining a 2¢/lb alignment with propylene monomer and a 3¢/lb margin gain. RTi’s VP of PP markets, Scott Newell, confirmed that suppliers plan another 2–5¢/lb increase in December, citing strong demand recovery in consumer goods, BOPP, nonwovens, and automotive, coupled with continued supply tightness.

Barry reported in early December that spot monomer prices spiked, making it harder for PP suppliers to meet demand. Greenberg added that upstream PP inventories are at their lowest level in 15 years, sustaining tightness into early 2021. Import prices are rising, but domestic rates remain more attractive.

PS Prices Up

Polystyrene (PS) suppliers increased prices by 2¢/lb in November and are targeting 7–10¢/lb hikes in December. The rise follows global feedstock price surges due to planned and unplanned outages in Asia and the Middle East. PS prices are likely to remain flat in the short term, but domestic production grew 8% while demand held steady, except for HIPS, where appliance sector demand is climbing.

Chesshier, RTi’s VP of PE, PS and nylon 6 markets, explained that the shift from a down to an up market was driven by styrene monomer cost increases. Barry noted that implied styrene costs, based on a 30/70 ethylene/benzene ratio, rose to 30.4¢/lb in early December—an increase of 9.4¢/lb over the prior four weeks.

PVC Prices Flat for Now

PVC prices were flat in November after a cumulative 16¢/lb increase through October 2020—a peak not seen since 2005, largely due to hurricane‑induced production disruptions. Mark Kallman, RTi’s VP of PVC, and PCW’s senior editor Donna Todd reported that most major suppliers issued a 3¢/lb December increase, though pipe converters resisted further hikes. Kallman said the temporary increase is a strategic move ahead of new‑year contract negotiations. Domestic PVC demand grew 3% through October but is now slowing, suggesting a flat or slightly lower price trend for December.

PET Prices Move Up

Spot PET truckloads in early December averaged 50¢/lb, up from 50¢/lb in November. PCW’s senior editor Xavier Cronin expects December spot prices to be flat, as a southern U.S. feedstock plant, limited by an August storm, has ramped to full production. Demand from bottle, container, and packaging manufacturers is falling due to end‑of‑year run‑downs, yet PET suppliers retain leverage heading into the new year. Cronin predicts January will see a surge in PET demand driven by holiday demand for bottled water and other consumer goods, while imported PET supply tightens due to higher ocean freight rates from Asia and Europe.

ABS Prices Up

ABS resin prices rose 15¢/lb between September and November, with a potential 3–5¢/lb increase slated for December. The uptick follows a faster‑than‑expected demand recovery in the third quarter across appliances, electronics, and automotive, boosting both imports and domestic production. Price increases in benzene, butadiene, and acrylonitrile also contribute.

PC Prices on the Way Up

Polycarbonate (PC) prices remained flat in the fourth quarter, but suppliers announced a 9¢/lb increase for December. Kallman noted that PC demand has risen in automotive, construction, appliances, and E&E sectors, while feedstock costs have also climbed. Lead times for PC compounds extended from eight to ten weeks as suppliers catch up from the first‑half dip in demand. Fourth‑quarter demand is at least 10% above 2019 levels, driven by supply‑chain restocking.

Prices Up for Nylons 6 & 66

Nylon 6 prices are on an upward trajectory as suppliers pursue 10¢/lb increases for December. Higher benzene and caprolactam costs, coupled with automotive and fiber/textile demand, underpin the rise. If feedstock prices and demand persist, another hike is likely this month.

Nylon 66 prices remained flat in the fourth quarter, but suppliers targeted 14–20¢/lb increases for December, with an unplanned shutdown at a Florida plant further tightening supply. Increased automotive demand has strained lead times for nylon compounds, prompting price pressure.