The heat is still on resin prices. (Your Business Pricing Update).

* The dog days of summer apparently have not sapped the resolve of resin producers to reclaim wilted profit margins. A pick-up in resin demand and continued pressure from monomer prices is spurring another hefty hike in expandable polystyrene, adding backbone to a pending polyethylene increase,

PP prices take a short breather

Polypropylene prices, including those of specialty copolymers, held steady in June and July, but the respite may have been brief. By the end of June, prices had risen 6-8cents/lb in two steps since the start of the year. However, suppliers did not appear to make any headway with their attempt at a third hike (3-4cents/lb for June 1). While Basell reportedly was holding out for the June hike, Dow simply replaced it with a new 3cents increase for Aug. 1. In early July, other suppliers were considering similar moves. Sunoco already planned to remove a 3cents TVA on Aug. 1.

Contributing factors: Price pressure from propylene monomer is starting to abate. Propylene monomer prices increased by 4cents/lb during April and May, and a 1cents increase was pending for June contracts. Demand for PP has been up considerably from last year, and--despite an expected seasonal lull in July--is projected to show a 67% increase for the year. Plant utilization rates are said to be in the mid-90% range, and some suppliers anticipate running at full capacity in the fall.

PE prices in flux

Polyethylene resin tabs were just beginning to move up in early July from a level already 5-7cents/lb higher than at the start of the year. Suppliers appeared determined to push through their third increase of the year--a 5cents hike scheduled officially for June 1. Although some buyers were paying the higher tabs last month, there were still some large customers that had not yet gone along.

Contributing factors: Poor profit margins are behind suppliers' resolve to push up resin prices. Ethylene prices are up 4cents/lb and could rise another 2cents when June contracts are settled. Demand has improved and plant capacity utilization rates are up in the high 80% range for LLDPE and HDPE and the low 90s for LDPE, an increase from the low 80s in January.

EPS gets another hike

There's no end in sight for the rise in polystyrene prices. Three increases lifted solid PS tabs 10cents/lb by June; a 4cents increase announced for July 1 is taking effect for contract customers this month. Suppliers have announced a 4Cents hike for Aug. 1 on EPS. This follows two hikes this year that raised prices a total of 12Cents. The latest move was started by BASF and followed up by Nova.

Contributing factors: Improving market demand is one element, but the real culprit is styrene monomer, which is tight and growing more expensive each month. Monomer prices are driven mainly by benzene, which accounts for about 70% of its cost. One major producer expected benzene contract prices to hit $1.50/gal last month, up from $1.15/gal in May and $1.32 in June. Ethylene, the other 30% of styrene monomer cost, has seen more moderate increases. As a result, styrene monomer spot price has doubled so far this year. Price increases have also hit the butadiene rubber used to make HIPS.

Besides the cost push, styrene monomer prices are also responding to a simple excess of demand over supply. Monomer is tight worldwide and is likely to stay that way for the next few years (see p. 50 for more details).

Market Prices Effective Mid-July (a)

RESIN GRADE (b)             cents/LB     cents/CU IN (c)

ABS
 MED IMPACT                 70-80            2.7-3.0
 HI IMPACT                  82-88            3.0-3.3
 X-HI IMPACT                92-95            3.4-3.5
 HI HEAT                    102-110          3.8-4.1
 PIPE                       68-72            2.5-2.6
 SHEET                      77-80            2.8-2.9
 TRANSPARENT                150-160          5.8-6.2
 FITTINGS                   78-82            2.9-3.0
 PLATING                    95-105           3.5-3.9
 FLAME RET                  118-129          5.2-5.7
 STRUCT FM                  83-97            3.6-4.3
 10% GLASS                  130-150          5.1-6.0
 30% GLASS                  126-146          5.8-6.7
ABS/PC ALLOY                135-140          5.5-5.8
ABS/PVC ALLOY               130-135          5.8-6.1
ABS/NYLON ALLOY             167-189          6.3-7.2

ACETAL
 HOMOPOL                    130-147          6.7-7.3
 20% GLASS                  160-220         9.0-12.4
COPOLYMER                   133-137          6.8-7.0
 25% GLASS                  160-215         9.2-12.3

ACRYLIC
 G-P                        72-102           3.0-4.3
 IMPACT                     130-191          5.4-7.9

ACRYLONITRILE COPOL
 EXTRUSION                  101-116          4.0-4.6
 INJECTION                  120-135          4.8-5.4

ALKYD                       65-74            4.9-5.5

CELLULOSICS
 ACETATE                    187                8.6
 CAB                        184                7.9
 CAP                        184                7.9

DAP (G-P)                   251-497         16.3-34.7

EPOXY
 G-P RESIN                  116-126          NA (d)
 COMPOUNDS
 C/B/T (e)                  123-166         9.4-12.9
 R/C/D (f)                  208-271         15.3-20.1
SEMICONDUCTOR
 NOVOLAC                    193-228         13.1-15.9
 ANHYDRIDE                  188-268         13.9-19.2

EVA
 INJECTION                  60-95            2.4-4.0
 FILM EXTRU                 55-87            2.4-2.7


EVOH                        265               11.3

FLUOROPOLYMER
 CTFE                       4500              346.6
 ECTFE                      1400-1600      108.3-123.8
 ETFE                       110-1600       73.6-107.1
 FEP                        925-1400       71.3-107.9
 PFA                        1700-240       131.6-185.8
 PTFE                       450-900         34.8-69.7
 PVDF                       650-800         41.4-5.09

IONOMER
 PACKAGING                  127-166          4.3-6.0
 INDUSTRIAL                 150-244          5.0-8.3

LIQUID-CRYSTAL POLYMERS
 INJECTION
 MIN FILLED                 690-1035        44.2-72.1
 GLASS FILLED               695-895           40-52
 CARBON FILLED              1700-2000      83.2-138.6
 UNFILLED                   1000-1200         58-70
EXTRUSION
 UNFILLED                   1200-2200      60.5-110.9

MELAMINE COMPOUND           90-94            5.5-5.6

MELAMINE/PHENOLIC COMPOUND  75-83            4.5-5.0

NYLON
 TYPE 6                     124-139          6.2-7.0
 MIN FILLED                 119-132          5.9-6.6
 30% GLASS                  150-160          7.2-7.7
TYPE 66                     140-155          7.4-8.2
 MIN FILLED                 140-148          7.4-7.8
 30% GLASS                  180-190          8.8-9.3
TYPE 69                     250-276         9.7-10.7
TYPE 6/10                   286-313         12.4-13.6
TYPE 612                    400               15.3
 30% GLASS                  309-311           14.7
 40% GLASS                  309               14.7
TYPE 46                     295               12.6
TYPE 11                     329-341         13.6-14.1
 30% GLASS                  331-350         15.0-15.8
 40% GLASS                  347-360         17.7-18.5
TYPE 12                     318-341         12.1-13.0
 30% GLASS                  327-350         14.7-15.8
 50% GLASS                  299-340         15.6-17.8
TRANSPARENT
 AMORPHOL S                 247-360         10.3-15.0

PHENOLIC MOLD COMP          55.5-87.5        2.8-4.0
 REINFORCE D
 GRADES                     100.5-267.5     6.0-15.9

POLYAMIDEIMIDE (g)
 UNFILLED                   2310-3045      124.7-164.4
 30% GLASS                  2250-2985      130.4-173.0
 30% CARBON FIB.            3260-3950      173.6-210.5

POLYARYLATE                 200-280         8.8-12.3

POLYARYLSULFONE             440               21.8

POLYBUTYLENE
 G-P                        94-96              3.1
 FILM                       88-91              2.9
 PIPE
  COLD WATER                116-120          3.9-4.0
  HOT WATER                 162-166          5.5-5.6

POLYCARBONATE
 INJECTION                  138-165          5.9-7.0
  20% GLASS                 177-190          7.6-8.2
  30% GLASS                 178-217          7.6-9.3
 EXTRUSION                  127-145          5.4-6.2
 BLOW MOLD                  140-170          6.0-7.3
 STRUCT FOAM                149-181          6.4-7.8
  20% GLASS                 235-255         10.1-11.0
 FR                         166-197          7.1-8.5
 CD                         82-100           3.5-4.3

POLYESTER (TP)
 PBT TYPE
  UNFILLED                  143-150            6.9
  HI-IMP                    154-165            7.6
  30% GLASS, FR             165-187           10.0
  STRUCT FOAM               159-165          NA (d)
 PET
  BOTTLE (RAILCAR)          63-67            3.2-3.4
 MOD PET
  30% GLASS                 132-143            7.4
  55% GLASS                 148-155            9.8
  30% GLASS
   FLAME RET                147-157            9.2
 PETG COPOL                 114-124          5.2-5.6

POLYESTER
 THERMOSET
  G-P ORTHO                 51-55            NA (d)
  ISOPHTHALIC               70-80            NA (d)
  BIS-A                     120-150          NA (d)

PEEK                        4400               231
  30% GLASS                 3300               173

POLYETHER-
 IMIDE                      641-646         29.3-29.5
  30% GLASS                 526-531         24.0-24.2

POLYETHER-
 KETONE (PEK)               2950              130.1
  30% GLASS                 2600               153

POLYETHER-
 SULFONE                    350-400         17.2-19.7
  30% GLASS                 425-525          21-25.9

POLYETHYLENE
 (RAILCAR)
 LDPE
 G-P MOLDING
  & EXTRU                   48-50              1.6
  INJECTION                 48-50              1.6
 LID RESIN                  49-51            1.6-1.7
  LINER                     48-50              1.6
 CLARITY                    46-48            1.5-1.6
 EXTRU COATG                47-47            15-1.6
 BLOW MOLD                  49-51            1.6-1.7
LLDPE,
BUTENE-
BASED
 G-P MOLDING
 FILM                       34-36            1.1-1.2
 ROTOMOLD                   36-38            1.2-1.3
LLDPE,                      38-40            1.3-1.4
HAO-BASED
 G-P MOLDING                40-42            1.3-1.4
 LID RESIN                  45-47            1.5-1.6
 LINER FILM                 41-43              1.4
HDPE
 G-P INJ MOLD               38-40            1.3-1.4
 FILM                       45-47            1.5-1.6
 BLOW MOLD                  40-42              1.4
HMW-HOPE
 BLOW MOLDING               46-48            1.6-1.7
 FILM                       49-51              1.7
 PIPE                       53-55            1.8-1.9
 UHMW-PE                    100-125          3.6-3.7

PPE/PPO-
BASED RESIN
 INJECTION                  180                6.8
 20% GLASS (h)              283               12.3
 30% GLASS (h)              291               13.3
 EXTRUSION (h)              242                9.2
 STRUCT FM                  231              NA (d)

PPS
 40% GLASS                  340-385           20-23
 55% GLASS/
  MINERAL                   275-295            18
 65% GLASS/
  MINERAL                   205-260           15-19

POLY-
 PROPYLENE
(RAILCAR)
 G-P HOMOPOL
  INJECTION                 40-42            1.3-1.4
  EXTRUSION
   FIBER                    38-40            1.2-1.3
  PROFILES                  41-43            1.3-1.4
  RANDOM COPOL
   BLOW MOLDING             45-47              1.5
   FILM                     44-46            1.4-1.5
   INJECTION                43-45            1.4-1.5
  IMPACT COPOL
   MED IMP                  54-55            1.7-1.8
   HI IMP                   55-60            1.8-1.9

POLYSTYRENE
 (RAILCAR)
 G-P CRYSTAL                43-45              1.6
  HI HEAT                   44-47            1.6-1.7
 HIPS                       46-49            1.7-1.8
  SUPER HI IMP              58-62            2.2-2.3
  FR                        81-92            3.0-3.5
  STRUCT FM (FR)            91-93              NA

EPS
 UNMODIFIED                 74-78            NA (d)
 MODIFIED                   78-79            NA (d)

POLYSULFONE                 425-500          19-22.3
 10% GLASS                  425-500          19-22.3
 30% GLASS                  350-450         15.6-20.1

POLYURE-
THANE (TP)
 ESTER TYPE                 185-255           8-11
 ETHER TYPE                 245-295          10.6-13

PU
ISOCYANATES
 POLYMERIC MDI              105-115          NA (d)
 80/20 TDI                  110-120          NA (d)

PVC RESIN
(RAILCAR)
 G-P HOMOPOL                29-32            NA (d)
 PIPE                       27-28            NA (d)
 FILM                       37-40            NA (d)
 COPOLYMER
  FLOORING                  44-46            NA (d)
 DISPERSION
  HOMOPOLY                  56-60            NA (d)
  COPOLYMER                 60-64            NA (d)
 CPVC PIPE
  COMPOUND                  119              NA (d)

PVDC
 EXTRUDABLE                 162              NA (d)

SILICONES
 MOLD. COMP.                581-640         38.1-39.3
 SPECIALTY GR.              891-3148         NA (d)
 SILICONE/EPOXY             339-343         22.5-22.8

STYRENE-
ACRYLIC                     108-112          3.7-4.0

SAN (G-P)                   66-74            2.5-2.8

STYRENE
MALEIC
ANHYDRIDE
 G-P                        110-115          4.2-4.3
 HI IMP                     130-140          4.2-4.5
 FR                         175-183          6.7-7.0

TP ELASTOMERS
 OLEFINIC                   70-76              2.4
 POLYAMIDE                  287-337         10.4-12.3
 POLYESTER                  200-310         8.8-13.6
 STYRENIC                   83-237           2.9-8.3

UREA MOLDING
COMPOUND
 BLACK & BROWN              67-78            3.6-4.1
 WHITE & IVORY              72                 3.8

VINYL ESTER
 COR RES                    147              NA (d)
 HEAT & COR RES             161              NA (d)

KEY: Colored areas indicate pricing activity. An arrow ([down arrow]) indicates direction of price change. (a) Truckload unless otherwise specified. (b) Unfilled natural color, unless otherwise specified. (c) Based on typical of average density. (d) Not applicable. (e) Novolac and anhydride grades for coils, bushings, transformers. Novolac and anhydride grades for resistors, capacitors diodes. (g) In quantities of 20,000 lb. (h) 19,800-lb load.

RELATED ARTICLE: [TiO.sub.2] Prices Up, Supply Snug

DuPont Titanium Technologies, Wilmington, Del., the leading supplier of titanium dioxide pigments, increased prices for all of its Ti-Pur [TiO.sub.2] grades on July 1. The increases for North America are 6Cents/lb in the U.S., 9Cents/lb ($C) in Canada, and $100/metric ton (4.5Cents/lb) in Mexico. The second-largest producer, Millennium Chemicals, Red Bank, N.J., announced identical increases.

According to DuPont business manager John Pritchard, TiO2 prices have dropped by 15% over the past 18 months, discouraging suppliers from investing in new capacity. Meanwhile, demand has increased globally in the last few months and plant utilization is up. DuPont is now running at full capacity. With no major new capacity planned by any producers, supply is already becoming snug.