Resin prices are on the rise due to several contributing factors. Some of those factors are seasonal based, caused by the usual summer fuel hike and the beverage season when the demand for plastic bottles peaks for the year.

Other big contributing factor to the price rise was the increase of the cost of feedstock for many of the resin types.

“PE PRICES UP
Polyethylene prices rose 3¢/lb in May and were expected to gain another 3¢/lb in June. The London Metal Exchange (LME) North American short-term futures contract in blown-film butene LLDPE traded at 41¢/lb for July, up from 38¢ for June.”
“PP PRICES RISE
Polypropylene prices moved up 2.5¢ to 3¢/lb in May, and suppliers issued hikes averaging 10¢/lb for June 1. Meanwhile, the LME short-term futures contract in g-p injection-grade homopolymer rose to 40¢/lb for July from 37¢ for June.”

“3¢ MORE FOR PVC
Some PVC buyers saw a 1.5¢ increase in May, which was half of what resin producers were seeking initially. Suppliers then posted a 3¢ hike for June and announced a further 3¢/lb hike for July 1. CDI, however, estimated only 1.5¢ for the June hike.”
“PET GOES UP, TOO
Bottle-grade PET prices moved up 2¢ to 3¢/lb in June, in partial implementation of the May 1 hikes of 5¢ to 6¢. July prices are expected to be flat.”

“NYLON & THERMOSETS UP
After Honeywell Resins and Chemicals announced a 10¢/lb hike in nylon for May 11, Rhodia came out with a 12% increase at the end of May, and DSM raised nylon 6 tabs 10¢ on June 15.”

Excerpts are from the Plastics Technology Magazine.

The rise of the resin price is signalling the easing of the economic slump. On the other hand, it is defiantly a great concern for us relative to our film products customers. We do as much as possible to mitigate the impact of the rising resin price on the cost of our products.