The price of virgin plastic beads heats up in September, with the price of recycled materials increasing

Prices for polypropylene, polystyrene and PVC have all increased since September 1 due to high demand and some supply constraints.

Plastics News also showed an increase in the price of recycled plastics, indicating that an increase has taken place in the first half of the year.

In September, the price of PP in North America increased by 11 cents per pound, matching the price increase of the polymer propylene monomer. PP producers in the region have tried to add 5 cents to their profit margin improvement over September prices, but failed, market sources said.

PP producers tried to do the same in September, but the price only matched the 2-cent increase seen for PGP. Prices have increased by a total of 25 cents in May and June. Factoring in previous rallies and falls, PP prices have gained a net 79.5 cents since December.

PP demand in North America remains strong from many end markets and supply has improved somewhat, but pockets remain tight. Suppliers are continuing to recover from the ice storm that hit Texas in February and knocked out nearly 90% of North American PP production in a matter of days.

North American granule distributors recently told Plastics News that tight supplies of granules have been compounded by ongoing challenges in logistics, labor, packaging, transportation, and roads. iron and road transport. The challenges of the COVID-19 pandemic were followed by hurricanes in the second half of 2020 and an ice storm in Texas.

The US PP operating rate in June is estimated at 96%, the highest in the industry in 14 years.

Benzene promotes increased PS
Polystyrene prices in the region reversed in September, up 8 cents after falling 10 cents in July and 8 cents in July. PS prices once again rose on the back of benzene, which is used to make styrene monomers. PS prices in North America are now up 30 cents net in 2021.

Benzene prices in September rose 46 cents to $3.55 per gallon, up nearly 15 percent from July. Market sources say that despite the August increase, PS production in the region is now running ahead of demand. bridge.

Strong demand drives up PVC prices
PVC prices in the region rose 2 cents in September after moving sideways in August. Material prices rose 1.5 cents in June. PVC prices in the region are now up 24.5 cents so far in 2021 and up 40 cents since January 2020.

The construction market, which accounts for about 60% of US/Canadian PVC demand, is particularly strong in 2021. U.S. housing numbers started at an annualized rate of 1.64 million in July, according to the Bureau. Census. That number is up 3% from July and up 6.5% from July 2020, when the COVID-19 pandemic had more of an impact on construction activity.

Recycled plastic increased
Plastics News is also adjusting prices per pound for recycled plastics to show the increase taking place in the first half of the year. Prices of many recycled materials have increased due to higher demand from consumer product applications and a lack of available virgin plastics.

These increases include:

• High density polyethylene colored mixed tablets up to 40 cents.

• Colored tablets after using low density PE film; linear low density PE stretch film pellets; and PP, ABS and PVC flake each increased by 15 cents.

• Industrial PP pellets and PS industrial flakes each increased by 30 cents.

• Industrial PS tablets increased by 10 cents.

• PET clean pellets after consumption increased by 25 cents.