Prime polyethylene (PE) resin prices shed $0.02/lb last week, while $0.03/lb were squeezed from the polypropylene (PP) resin market at the PlasticsExchange trading desk, amid falling monomer costs, lax demand, and growing bearish sentiment. Many resellers and processors have been de-stocking their resin inventories to minimize exposure during this down leg of the resin pricing cycle, reports the PlasticsExchange in its weekly Market Report. Consequently, there is ongoing demand for quick shipments of packaged truckloads of resin, which helped to kick start the week, month, and quarter. Some of the sharply discounted off-grade PP railcars were also compelling to processors, who snagged some later in the week.

Sabic is now offering bio-based versions of all Noryl, Flexible Noryl, Noryl GTX, and Noryl PPX resin grades to help customers meet increasingly rigorous sustainability goals. Formulated with polyphenylene ether (PPE) base resins certified under International Sustainability & Carbon Certification (ISCC) Plus, the bio-based materials provide properties similar to those of fossil-based grades. Users can also select from multiple levels of bio-based content for the Noryl grade they select.

Additional downward pricing pressure emerged after Heartland, a new Canadian producer, announced the first PP railcar loading at its facility in Fort Saskatchewan, AB. It has been making pellets since late June and intends to gradually ramp up production through the remainder of the year. The added capacity and continued unraveling in spot PGP and PP prices are setting the stage for another decrease in July PP contracts, according to the PlasticsExchange. That would follow the sharp $0.17/lb drop in contracts over the last two months.

Spot resin market activity was a bit sluggish following the Fourth of July holiday, but by midweek a good flow of fresh off-grade and some Prime railcars rolled into the spot market. Sensing a challenging sales month ahead, resellers were looking to offload some of their July commitments.

Noryl NH5120BIO4 resin is suited for evaluation in housings and enclosures, heating/ventilation/air conditioning (HVAC) components, and photovoltaic/solar junction boxes. The bio-based, non-brominated/non-chlorinated flame-retardant resin has a UL flame rating of V1 at 1.5 mm with no intentionally added per- or polyfluorinated substances (PFAS). Noryl NH5120BIO4 resin delivers a balance of heat resistance, flow, hydrolytic and dimensional stability, and creep performance, and retains its mechanical properties in harsh outdoor environments.

Previously, Trinseo announced price increases for all of its PC/ABS and ABS resins for the automotive market. Effective July 1, the Pulse PC/ABS resins rose €370 per metric ton and the price for Magnum ABS resins went up by €450 per metric ton.

June PE resin contracts held flat, maintaining the $0.03/lb increase that was implemented in May. Despite more price increases on the table for July and August, PlasticsExchange writes that it might be difficult for sellers just to maintain current contract levels this month. PP contracts wiped away a solid dime in June, bringing the two-month drop to a hefty $0.17/lb. Polymer-grade propylene (PGP) monomer costs continued to erode, indicating another likely decrease for July PP contracts. While the market cools, the Gulf waters continue to heat up, and forecasters are still calling for a very active hurricane season. Something for processors to keep in mind . . . .

Truckloads were the preferred size, more so than railcars. Processors have generally been limiting new purchase volumes in favor of working down their current resin supplies, hoping to buy their next batch of resin when prices have eased even further. Producers remained willing to deeply discount off-grade materials, but were a bit coy with spot railcars as they try to keep domestic prime levels buoyed.

“Our Selkirk, NY, facility was one of the first production and compounding facilities to receive ISCC PLUS accreditation for the production of PPE resin and compounds based on renewable, bio-circular sources,” said Evelyn Pearson, a senior manager at Sabic. “We plan for Noryl grades formulated with these bio-based feedstocks to be certified under ISCC PLUS at Selkirk and other global Noryl compounding plants. This achievement underscores Sabic’s commitment to building a circular plastics industry.”

Styron general-purpose polystyrene grades, Styron and Styron A-Tech, Styron C-Tech, and Styron X-Tech high-impact polystyrene grades by €290 per metric ton;

PE activity was similar to the previous week, as spot resin prices resumed their downward trend, falling another $0.02/lb following the $0.04/lb slide seen in spot levels during June. Despite the limited trade volume, transactions were spread across most key commodity grades, said the PlasticsExchange.

Global materials company Trinseo and its affiliate companies in Europe announced on July 5 a price increase for all polystyrene (PS), polycarbonate (PC), ABS, and SAN grades. Effective July 1 or as existing contract terms allow, the contract and spot prices will increase as follows:

To demonstrate the feasibility of this bio-based approach, Sabic has commercialized three popular Noryl grades; however, these example materials represent only a small percentage of the full offering. The availability of bio-based versions broadens the choice of environmentally responsible Noryl resins beyond the company’s recently introduced post-consumer recycled (PCR)-based materials containing more than 25% PCR content.

After the successful May $0.03/lb increase, the June resin price increase has officially been pushed to July and the July increase has been pushed to August. For now, the market still feels weak, according to the PlasticsExchange. Ample supplies are available, so other than just playing out the cycle, it might take a production disruption to put resin pricing power firmly back into producers’ hands, said the Chicago-based resin clearinghouse.

Noryl GFN2BIO3 resin features high strength, hydrolytic and dimensional stability, low warpage, and low specific gravity. This bio-based material carries a UL746C outdoor suitability rating of F1 and is suited for indoor and outdoor applications in the building and construction and lawn and garden industries.

Noryl GTX902BIO3 resin, a bio-based PPE alloy that provides chemical resistance and paintability for potential use in applications such as automotive wheel covers, automotive electrical components, and painted automotive trim.

At the same time, suppliers are under pressure to reduce inventory positions during July, as warehouses remain packed near capacity and have been ratcheting up packaging and storage fees, which are poised to escalate further. Logistics remain an issue, with a limited rail embargo on resin shipments into California from Texas and several other states. Rail services in other parts of the United States are also facing extreme difficulties and backups.

Spot PP trading was good, but fell short of great, with prices falling another $0.03/lb this past week. PP transactions outstripped those for PE at the PlasticsExchange trading desk. Completed deals spanned from Prime homo-polymer PP Raffia and mid-melt Injection to very high melt for melt-blown applications. There was demand for co-polymer PP frac No Break, mid-melt impacts, and lower-end compounding resin. Some processors took advantage of comparatively well-discounted resin pricing, while other buyers required immediate shipments to tide them over until their late railcars arrived.

“We’re pleased to provide customers with new choices to reduce the global warming potential of both existing and new applications made with Noryl materials,” said Joshua Chiaw, director, business management, LNP & Noryl, Specialties, Sabic. “Bio-based PPE feedstocks enable Sabic to efficiently produce sustainable Noryl materials that can serve as drop-in replacements for traditional grades — with equivalent performance and processability. Expansion of our Noryl resin portfolio with bio-based versions is a key part of our strategy for helping brands, OEMs, tier suppliers, and molders achieve their sustainability goals.”

Formulated with polyphenylene ether base resins, the grades offer sustainable solutions for the automotive, building and construction, and lawn and garden industries.