Commodity Resin Prices: Current Trends and Outlook

Recent market data shows that commodity resin prices have risen sharply, driven by sustained demand and constrained supply chains. Planned and unplanned shutdowns—particularly in polyethylene (PE) and polypropylene (PP)—along with volatile feedstock costs, such as benzene for polystyrene (PS), have amplified price pressure across the major resins.

These observations come from leading industry voices: purchasing consultants at Resin Technology, Inc. (RTi), senior editors from PetroChemWire (PCW), and CEO Michael Greenberg of The Plastics Exchange.

Editor’s Note

Due to annual contract negotiations and the addition of new resin capacities, PT periodically revises published prices to better reflect current market realities. These adjustments represent updated “typical” price estimates rather than a change in market direction.

Polyethylene (PE) – Prices Keep Rising

PE prices climbed 5¢/lb in May, with suppliers announcing further increases of 5–7¢/lb for June, according to Mike Burns, RTi’s VP of PE markets. Burns attributes the uptick to demand outpacing supply, exacerbated by three unplanned shutdowns at Dow, Nova, and Braskem. He projects that any June price moves will be largely disruption‑driven, and estimates that it could take roughly three months—until September—to restore balanced inventories, barring further outages.

PCW’s David Barry notes robust demand but predicts that July pricing could stabilize or slightly decline as some processors pause operations and exporters may need to cut prices to clear inventories.

Michael Greenberg reports that suppliers have already implemented 31–33¢/lb increases throughout 2021 (including a nickel‑influenced bump in May) and a cumulative 57¢/lb rise since June 2020. Spot PE demand remains strong, but availability is limited; the high‑molecular‑weight (HMW) PE film grade has become the only relatively “loose” PE grade with growing availability, though weak export flows continue to constrain supply.

Polypropylene (PP) – Double‑Digit Gains

PP prices rose 13¢/lb in May, coinciding with the settlement of the May propylene monomer contract. In June, most suppliers issued a non‑monomer‑related increase of 8¢/lb, per RTi’s Scott Newell, PCW’s Barry, and Greenberg. Newell highlights that supply is improving, with days of supply moving from 28.5 to a projected 32–34 by June—indicating a more balanced market. However, he cautions that suppliers are building inventories and may limit sales allocations through July and August.

Barry predicts that the upward monomer trend will reverse in June, though he expects some of the 8¢/lb margin to materialize. He notes that demand remains resilient, but logistics and high freight costs are constraining import supply.

Greenberg observes that spot PP demand stayed strong into June, with the May contract spike nudging spot prices close to record levels. PP copolymer, typically trading 2¢/lb above homopolymer, saw the spread widen to 10¢/lb, reflecting scarcity.

Polystyrene (PS) – Volatility & Price Erosion

PS prices increased 15¢/lb in May, following a 9¢/lb rise in April. PCW’s Barry and RTi’s Robin Chesshier attribute the surge to volatile benzene feedstock prices—peaking at $5/gal before falling to $3.70/gal by end‑May—and a 30/70 spot ethylene/benzene ratio yielding an implied styrene cost of 47.9¢/lb, down 11.9¢/lb over four weeks.

Both experts anticipate a further decline of 8–9¢/lb in June, with additional erosion possible. PS demand fell 3% in Q1, and plant operating rates dropped from 70% in March to 62% in April. Barry suggests that the shift toward PET packaging is tightening PS demand.

Polyvinyl Chloride (PVC) – Upward Pressure, Potential Flattening

PVC prices rose 4¢/lb in April, with an additional 3¢/lb hike anticipated in May. Mark Kallman, RTi’s VP of PVC and engineering resins, and PCW’s Donna Todd report another 3¢/lb increase scheduled for June 1. Kallman warns that the June increase may be questionable as suppliers rebuild inventories at healthy mid‑80s production rates, and force majeure actions may be lifted by June.

Demand remains robust, especially in building and construction. Todd notes that processor allocation rates have risen from 50–75% in February to 80–90% in recent weeks. Kallman projects July prices could flatten.

Polyethylene Terephthalate (PET) – Rising Tabs

PET resin prices entered the high 70s in early June, driven by strong demand from carbonated soft‑drink and packaging sectors as warmer weather kicks in. PCW’s Xavier Cronin observes that PET prices have steadily climbed from the high‑60s in April. Cronin projects prices could surpass 80¢/lb by mid‑June as domestic suppliers and importers compete to meet U.S. bottle and container demand. Imported PET truckloads are 2–5¢/lb lower than domestic prices, depending on port of entry.

Acrylonitrile Butadiene Styrene (ABS) – Gradual Increases

ABS prices rose 30¢/lb from March to June, following a 14¢/lb rise in the first two months of the year. RTi’s Kallman attributes the climb to feedstock costs, particularly benzene, and to supply not keeping pace with demand due to unplanned production issues. Prices may flatten this month, but suppliers remain in inventory‑catch‑up mode while demand builds toward Q3.

Polycarbonate (PC) – Steady Gains

PC prices increased 40¢/lb on average in the first half of the year, per RTi’s Kallman. While most suppliers were under force majeure through May, production is improving, though lead times remain long. High feedstock prices (e.g., benzene) contribute to higher PC prices, but the main driver is supply shortfalls. Kallman notes that restocking efforts in Q3 are further tightening the market.

Nylon 6 & 66 – Price Spikes Amid Supply Constraints

Nylon 6 prices rose 58¢/lb from March to May, with an initial 15¢/lb jump in the first two months, according to RTi’s Chesshier. Benzene and caprolactam feedstocks reached record highs in April, but the increase was primarily supply/demand driven. Global and domestic demand is strong; however, logistics challenges and freight cost surges—fourfold in some cases—limit imports. Chesshier projects prices could plateau in June and July but may climb again toward the latter half of Q3 as demand picks up.

Nylon 66 prices rose another 15–20¢/lb through the second quarter, following a 14–20¢/lb surge in the first. RTi’s Kallman expects a return to a balanced supply/demand ratio in Q3, provided hurricane season does not cause disruptions. He highlights strong demand across sectors and extended lead times, but notes tightness in key additives, especially from Asia, compounded by high freight costs.