Regional prices for polyethylene resins and PET bottle resin finished flat for the month, but a PE increase attempt didn't go down without a fight.

Increases seen by PP, PS and PVC were the result of solid demand and some supply restrictions. September is shaping up to be a mixed bag for commodity resins, as markets were affected by Hurricane Ida in different ways in late August.

PP prices for August jumped 11 cents per pound, matching an increase seen in prices for polymer-grade propylene monomer. Regional PP makers had attempted to add 5 cents in margin improvement onto August prices but were unable to, market sources said.
PP makers had tried to do the same thing in July, but prices only matched the 2-cent increase seen for PGP. Prices had jumped a total of 25 cents in May and June. Factoring in previous increases and decreases, PP prices are up a net of 79.5 cents since December.

North American PP demand remains strong from many end markets, and supply has improved somewhat, but pockets of tightness remain. North American processors also have been more successful in accessing lower-priced PP resin from foreign markets.

Hurricane Ida shut down Pinnacle Polymers' PP plant in Garyville, La., but that plant was in the process of restarting as of Sept. 16. Propylene production was coming back at some locations, but lower demand had spot PGP prices down 10 cents or more in mid-September, indicating that PP prices for the month could be down as well.

PVC prices moved up 2 cents in August after being flat in July. Prices for the material had been up 1.5 cents in June. Prices now have increased 24.5 cents so far in 2021 and a net of 40 cents since January 2020.

The construction market, which accounts for around 60 percent of U.S./Canadian PVC demand, has been particularly strong in 2021. U.S. housing starts were at an annual rate of 1.64 million for July, according to the Census Bureau. That number is up 3 percent vs. June, and up 6.5 percent vs. July 2020, when the COVID-19 pandemic was having more of an impact on construction activity.

The regional PVC market could see the impact from Ida, with major plants operated by Shintech Inc., Formosa Plastics Corp. USA and Westlake Chemical Corp. all being shut down for periods of time. A major Shintech PVC unit in Freeport, Texas, also was closed because of a lack of vinyl chloride monomer feedstock from supplier Olin Corp.

Sources said that Shintech's plants in Plaquemine and Addis, La., were in the process of restarting as of Sept. 16. A lack of nitrogen needed for restart procedures also was affecting production schedules, they added.

As a result of this market tightness, some PVC makers have increased a 2-cent price hike attempt for September to 7 cents. Reduced demand as construction season slows down could reduce the chances of the larger attempt being successful.

Regional PS prices reversed course in August, increasing by 8 cents after tumbling 10 cents in July and 8 in June. PS prices again followed benzene feedstock, which is used to make styrene monomer. North American PS prices now are up a net of 30 cents so far in 2021.

Benzene prices in August were up 46 cents to $3.55 a gallon, a gain of almost 15 percent vs. July. Market sources said that in spite of the August increase, regional PS production now is running ahead of demand.

Ida's primary impact on the PS market is the closing of TotalEnergies' massive resin plant in Carville, La. That 1.4 billion-pound-capacity unit represents about 25 percent of all U.S. PVC capacity. Styrene plants in the area operated by Americas Styrenics and Cosmar Co. also were out of commission.

Sources said that the TotalEnergies PS plant was in the process of restarting as of Sept. 16, but that higher PS prices for the month remain a strong possibility.

The polyethylene battle was fought throughout August, with a big July inventory build ultimately scuttling a 5-cent price hike that had been attempted. That hike had a chance to go through on high density PE right through the first week of September until producers pulled it back after resistance from buyers.

PE supplies for September could be affected by reduced production at plants operated by Dow Inc. and ExxonMobil Chemical in the wake of Hurricane Ida. Hurricane Nicholas — a weaker storm that made land Sept. 14 — knocked out power and resulted in the closing of an HDPE unit operated by LyondellBasell Industries in Bay City, Texas.

A LyondellBasell spokesperson said Sept. 16 that the Bay City plant, known as the Matagorda Complex, safely shut down Sept. 14 because of power outages. Power has been restored and the firm "has initiated startup procedures" for the plant.