Resin Buyers Face Mixed Market Fundamentals Despite September Increases

Resin buyers are navigating a market that remains divided, with some categories showing strong positions for buyers while others face increased pressure. This shift was highlighted by ResinSmart in its latest analysis, released on September 10, 2026.

According to ResinSmart, the market's mixed stance is evident in the September increase initiatives across several major resin categories. Despite the backdrop of a nearly 10% increase in West Texas Intermediate (WTI) crude oil over the past five trading days, Michael Workman, executive director of ResinSmart, emphasized that buyers should not be swayed by the number of increase letters alone. "The number of increase letters may suggest a broad shift, but the fundamentals of the market tell a different story," said Workman.

In the polyethylene (PE) market, buyers are facing a 7-cent-per-pound September increase initiative from producers. However, the availability of new Gulf Coast capacity and a healthy supply situation allow buyers to challenge this full increase. "The supply and demand dynamics in PE are far from a seller's market, making buyers more confident in negotiating terms," stated Workman.

The polypropylene (PP) market is one of the clearest buyer-favorable areas, with no September increase initiatives announced. Additionally, polymer-grade propylene spot pricing remains below 40 cents per pound, and August PGP contracts settled 1.5 cents lower than the previous month. Ample material availability is further limiting producers' leverage in this sector.

Other resin categories have seen more significant changes. Three producers of Nylon 6 announced September increases ranging from 5 to 8 cents per pound, while BASF is seeking an 8-cent-per-pound increase on Nylon 66. At least one polycarbonate producer is also targeting a 10-cent-per-pound increase. ResinSmart advises buyers to evaluate these initiatives against underlying feedstock data. In the case of Nylon 6, caprolactam spot pricing moved lower during the same period producers cited upstream cost pressure, highlighting the need for buyers to question the true nature of the cost pressure.

PVC buyers are also facing new pricing pressure, with two producers seeking a 2-cent-per-pound September increase as the Formosa Point Comfort, Texas, plant undergoes a turnaround. However, weaker construction activity and the end of the summer construction season continue to weigh on demand. Polycarbonate buyers have room to challenge the 10-cent-per-pound initiative, given the broad producer participation has not emerged and sluggish demand continues to limit upward pricing pressure.

The analysis underscores the importance of evaluating each resin market independently. Higher crude oil and feedstock costs may support increases in some markets, but they do not override supply and demand fundamentals. "The leverage hasn't disappeared; it has become more specific," Workman said. "Buyers in the strongest positions this month will be the ones who understand the feedstock settlements, supply data, and demand fundamentals behind their resins before engaging with suppliers."

ResinSmart will continue to monitor September contract settlements, feedstock movements, producer initiatives, Gulf Coast supply conditions, and demand trends as buyers work through their September pricing negotiations.