PE, PP, PS prices are on the rebound.

* Price relief for processors in the first half of 2005 appears to have been short-lived. Polyolefins and polystyrene are headed back up, lifted by a surge in domestic and export demand and in feedstock prices, as well as production outages. However, vinyl prices are still weak.

PE

Polyethylene prices are poised to rise after dropping 10 cents/lb in the first half. Suppliers aimed to implement last month the 6 cents increase originally announced for June and to follow that with a new 6 cents hike on Aug. 1.

Contributing factors: A surge in domestic and export demand, and disruptions in monomer and polymer production, are expected to support higher PE prices. Domestic processors have depleted the high inventories they held in the first half. In addition, Chinese buyers are back in the export market.

Add to these factors the impact of production outages, most notably that of Nova Chemicals, which declared force majeure on June 21 for polyethylene and ethylene monomer. It was forced to slow production at Joffre, Alberta, to 40% of capacity due to the weather-related shutdown of six natural-gas processing plants in Alberta that supply Nova's ethane feedstock. The company expects to rebuild its full supply of ethane before the end of September. Nova's Alberta production represents more than 6% of North American ethylene capacity and more than 5% of PE capacity. Total lost ethylene production is expected to be in the range of 200 to 350 million lb and lost PE sales volumes are expected to be 70 to 120 million lb. Mechanical problems caused other temporary ethylene disruptions in late June at ChevronPhillips in Sweeny, Texas, and Dow in Freeport, Texas.

Suppliers project more balanced supply and demand in the second half, but they see that balance as tipped in their favor. Says one leading supplier, "We expect a favorable supply/demand balance over the next three years, as there is no new capacity coining on stream and global GDP is projected to grow at over 3%/yr." Adds another, "The second half of this year could resemble last year's, which was driven by a strong supply/demand balance."

PP prices to rebound

Polypropylene prices are on the rebound, after dropping at least 5 cents/lb this year. Suppliers aimed to win back lost ground by pushing through a 4 cents increase last month. And a new 5 cents/lb hike was slated for Aug. 1.

Contributing factors: Processors' PP inventories are at 12-month lows, and China re-emerged as an export buyer in June. Said one supplier, "The first indication of higher prices, coupled with low inventories, spurred considerable buying activity in July." Resin capacity utilization, which had dropped below 90%, is recovering fast. One supplier said in mid-July, "We're running at 95%-plus rates and are selling out."

Propylene monomer prices, which had declined 9 cents/lb this year, were also moving back up. June monomer contracts settled at 33 cents/lb, and July prices looked set to rise 2.5 cents to 3 cents more.

PVC tabs still falling

At mid-month, PVC resin prices were expected to slide another penny or two in July, after losing 1 cent in June. That would leave PVC prices up at most 1 cent this year. Spot prices for PVC in Asia are said to be down to 30 cents to 35 cents, slowing U.S. exports to a trickle.

Contributing factors: Pipe demand reportedly picked up slightly in June, but the market is being dampened now by very weak resin prices in China, where large new plants have started up.

PS, EPS hikes announced

PS resin producers have all announced 5 cents to 10 cents hikes over the next two months. Nova first announced a hike of 5 cents for Aug. 1. Its move was copied by Ineos Styrenics, the former North American styrenics business of BASE Then Fina announced 5 cents for July 1, and Dow and Chevron did the same. After that, Nova announced 5 cents for July 11 in addition to the 5 cents cents for Aug. 1. Yet, few prices actually increased by mid-July. The big hit is apt to come Aug. 1.

Meanwhile, Nova also posted 4 cents to 6 cents increases for Aug. 1 on EPS shape and block beads, respectively. But as of mid-July, those hikes received no support from BASF or Huntsman.

Contributing factors: Demand for solid PS is described as so-so. Price hikes are apparently driven by feedstock cost, based on the resurgence in benzene prices from $2.30 in June to $3 in July.

Market Prices Effective Mid-July (a)

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

ABS
    MED IMPACT         80-90                3.0-3.4
    HI IMPACT          85-95                3.2-3.6
    X-HI IMPACT        95-105               3.6-4.0
    HI HEAT            85-95                3.2-3.6
    PIPE               80-110               3.0-4.2
    SHEET              90-110               3.4-4.2
    TRANSPARENT        125-165              4.9-6.4
    FITTINGS           85-115               3.2-4.3
    PLATING            95-105               3.5-3.9
    FLAME RET          120-140              4.6-5.9
    STRUCT FM          83-97                3.6-4.3
    10% GLASS          125-140              5.0-5.6
    30% GLASS          116-136              5.3-6.3
  ABS/PC ALLOY         145-180              5.5-6.8
  ABS/PVC ALLOY        130-135              5.8-6.1
  ABS/NYLON ALLOY      190                    7.3
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        180-240              9.2-12.2
ACRYLIC
    G-P                129-164              5.4-6.9
  IMPACT               174-234              7.3-9.9
ACRYLONI-
TRILE COPOL
  EXTRUSION            78-110               3.3-4.7
  INJECTION            130-191              5.4-7.9
ALKYD                  65-74                4.9-5.5
CELLULOSICS
  ACETATE              187                    8.6
  CAB                  189                    8.2
  CAP                  189                    8.2
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            46-52                1.5-1.7
  FILM EXTRU           42-49                1.4-1.6
EVOH                   265                   11.3
FLUORO-
POLYMER
  CTFE                 2500-5500            193-424
  ECTFE                1470-1680           93.1-107.7
  ETFE                 1155-1680           70.7-102.8
  FEP                  971-1470            74.8-113.2
  PFA                  1785-2520          134.9-190.5
  PTFE                 450-900             34.8-69.7
  PVDF                 680-900             43.3-57.3
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             139-159              5.7-6.5
    MIN FILLED         131-144              5.4-5.9
    30% GLASS          148-173              6.0-7.0
  TYPE 66              153-168              6.3-6.9
    MIN FILLED         151-159              6.2-6.5
    30% GLASS          142-192              5.8-7.9
  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
    AMORPHOUS          247-360             10.3-15.0
PHENOLIC
MOLD COMP              75                     3.8
    REINFORCED
    GRADES             105-268              6.1-16
POLYAMIDE-
IMIDE  (g)
  UNFILLED             2750                 148.5
  30% GLASS            2500                   135
  30% CARBON FIB.      3500                   185
POLYARYLATE            200-280              8.8-12.3
POLYARYL-
SULFONE                440                   21.8
POLYETHYLENE
  G-P                  94-96                  3.1
  FILM                 88-91                  2.9
  PIPE
    COLD WATER         116-120                3.9
    HOT WATER          162-166              5.5-5.6
POLYCAR-
BONATE
  INJECTION            138-165              5.9-7.0
    20% GLASS          177-190              7.6-8.2
    30% GLASS          178-217              7.6-9.3
  EXTRUSION            145-180              6.3-7.8
  BLOW MOLD            155-190              6.7-8.2
  STRUCT FOAM          149-181              6.4-7.8
    20% GLASS          235-255             10.1-11.0
  FR                   166-197              7.1-8.5
  CD                   140-200              6.0-8.6
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)   78-80                3.9-4.0
  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            115-120               NA (d)
  ISOPHTHALIC          140-150               NA (d)
  BIS-A                185-190               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          74-76                  2.5
    INJECTION          76-78                2.5-2.6
    LID RESIN          78-80                2.5-2.6
      LINER            73-75                  2.5
    CLARITY            71-73                2.4-2.5
    EXTRU COATG        76-78                2.5-2.6
    BLOW MOLD          78-80                2.5-2.6
LLDPE,
BUTENE-
BASED
    G-P MOLDING        63-65                2.1-2.2
    FILM               65-67                  2.2
    ROTOMOLD           67-69                2.2-2.3
LLDPE,8
HAO-BASED
    G-P MOLDING        66-68                2.2-2.3
    LID RESIN          76-78                2.5-2.6
    LINER FILM         69-71                2.3-2.4
HDPE
    G-P INJ MOLD       62-64                2.1-2.2
    FILM               72-74                  2.5
    BLOW MOLD          66-68                  2.3
HMW-HDPE
    BLOW MOLDING       71-73                2.4-2.5
    FILM               73-75                2.5-2.6
    PIPE               80-82                2.7-2.8
    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          357-404             21.2-24.0
    55% GLASS/
      MINERAL          289-310             20.8-22.3
    65% GLASS/
      MINERAL          226-273             15.5-18.7
POLY-
PROPYLENE
(RAILCAR)
    G-P HOMOPOL
      INJECTION        71-73                  2.4
    EXTRUSION
      FIBER            69-71                2.2-2.3
    PROFILES           75-77                2.4-2.5
    RANDOM COPOL
      BLOW MOLDING     76-78                  2.5
    FILM               74-76                2.4-2.5
      INJECTION        76-78                  2.4
    IMPACT COPOL
      MED IMP          87-89                2.8-2.9
      HI IMP           90-92                2.9-3.0
POLYSTYRENE
  (RAILCAR)
  G-P CRYSTAL          63-71                2.4-2.7
    HI HEAT            66-74                2.5-2.8
  HIPS                 64-72                2.4-2.7
    SUPER HI IMP       74-80                2.8-3.0
    FR                 82-91                3.1-3.4
    STRUCT FM (FR)     90-93                  NA
EPS
  UNMODIFIED           85-88                 NA (d)
  MODIFIED             86-90                 NA (d)
POLYSULFONE            432-512             19.3-22.9
  10% GLASS            607-612               27-27.3
  30% GLASS            557-562             24.9-25
POLYURE-
THANE (TP)
  ESTER TYPE           185-255                8-11
  ETHER TYPE           245-295             10.6-13
PU
ISOCYANATES (i)
  POLYMERIC MIDI       120-135               NA (d)
  80/20 TDI            90-98                 NA (d)
PVC RESIN
(RAILCAR)
  G-P HOMOPOL          50-52[down arrow]     NA (d)
  PIPE                 47-49[down arrow]     NA (d)
  FILM                 59-61[down arrow]     NA (d)
  COPOLYMER
    FLOORING           63-65                 NA (d)
  DISPERSION
    HOMOPOLY           62-78                 NA (d)
    COPOLYMER          77-81                 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        76                     3.8
  WHITE & IVORY        81                     4.0
VINYL ESTER
  COR RES              185-197               NA (d)
  HEAT & COR RES       210                   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 or average density. (d) Not applicable.
(e) Novolac and anhydride grades for coils, bushings, transformers.
(f) Novolac and anhydride grades for resistors, capacitors, diodes.
(g) In quantities of 20,000 lb. (h) 19,800-lb load. (i) Prices include
benzene surcharge.