Raw material costs blamed for higher engineering resin prices | Plastics News

Higher raw material costs have sent North American prices for polycarbonate, ABS and nylon resins higher since April 1.

Prices for PC and ABS each are up an average of 5 cents per pound in that time period, with average selling prices for nylon 6 and 6/6 up an average of 8 cents, according to market sources contacted by Plastics News.

"Demand for engineering resins is up in some end markets, but suppliers keep pointing back to raw materials as the reason for the increases," a resin buyer in the Midwest U.S. said.

In a recent letter to customers, officials with PC maker Covestro LLC in Pittsburgh said raw material costs "have increased significantly … and are forecasted to continue to escalate." They added that the firm "is unable to absorb such raw material price developments."

In a similar letter to customers, officials with PC and ABS maker Sabic in Houston cited "inflationary pressures on key raw materials, energy and transportation costs" as drivers behind the price hikes.

Officials with nylon 6/6 supplier Ascend Performance Materials in Houston said in a customer letter that the firm "continues to see raw materials costs outpace forecast."

North American prices for PC, ABS and nylon also had increased in the first quarter of the year for similar reasons. During those three months, nylon prices were up an average of 10 cents per pound, with prices for PC and ABS up 5 cents each.

For PC and nylon, the first-quarter hikes reversed trends that had seen prices drop in the fourth quarter of 2023. Prices for all grades of nylon 6 and 6/6 had been down an average of 5 cents between October and December 2023, with PC prices down an average of 2 cents.

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