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The following information is provided by Plastics Information Europe. For more than 34 years, PIE has been an invaluable source of information for European plastics industry decision makers - a quick, yet in-depth look at the development of plastics markets and polymer prices. Available online 24/7 and as a printed newsletter twice a month.
To read entire versions of the following reports, go to www.pieweb.com and sign up for a 48-hour free trial!
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Standard Thermoplastics April 2017: Split demand / Sudden buyers' restraint after Easter / PE already declining, PP dampened / PS plunges after SM / Weakening trend in May
PE: In April, the about-turn in the factors responsible for price movements in the global oil and downstream markets did not go unnoticed by European PE buyers. Whereas most grades were still under upward pressure at the beginning of the month, the picture changed significantly over the Easter holidays. The turnaround also meant that buyers' restraint grew significantly in the second half of the month, as they purchased only what they absolutely needed. With low-pressure grades in particular, this has already led to small initial price cuts, while LD producers managed to hang on to a rollover until the end of the month. Apart from the LLD injection moulding grades, which are in very short supply, the only other exceptions were the pipe grades. Here, with the building season really picking up speed, prices moved up slightly. The upward momentum that previously dominated this year has come to an abrupt halt. Despite the renewed rollover in the ethylene reference price the signs for May are pointing down. The only real exceptions are the types used in the building sector – especially the pipe grades – as well as certain LLD injection moulding grades that are still on the tight side.
PP: In the first half of April, PP producers were able to achieve slight margin gains, but the situation clearly reversed after the Easter holidays. With feedstocks pointing downward, converters took a more cautious approach and ordered only what was immediately needed. For polymer products that faced import competition, suppliers could not even pass on their higher costs. Copo buyers, who are more dependent on European product, could at least hold producers’ margin improvements to a minimum. Compounds also saw only minimal upward pressure, in particular those indexed to standard PP. In May, producers will be able to raise prices only in their dreams. Their dreams could turn to nightmares moreover, as despite the rollover of the European propylene contract, notations for basic grades could even begin to deteriorate slightly. Here, the global downward trend will make its influence felt. By the reverse token, prices for copo grades and compounds could stabilise somewhat.
PVC: As expected, the European PVC suppliers took advantage of the ongoing maintenance season to further boost their margins. Against the backdrop of a rollover for ethylene, they succeeded in pushing through moderate price increases. Their eager ambitions were kept in check somewhat, however, by rising quantities of imports – triggered by the high notations in Europe. At the same time, rigid PVC blends registered a further disproportionate increase following dramatic developments for the key additive titanium dioxide. Prices for rigid blends are now even considerably above those for flexible blends. Meanwhile, PVC pastes hovered resolutely at a high altitude, way above the suspension PVC that remained on the flat terrain beneath them. The C2 notation is continuing unchanged into May. Stable to slightly firming prices are to be expected for the base material. Flexible compounds and PVC pastes will essentially follow this trend. In the case of rigid PVC materials, by contrast, the titanium dioxide thrust seems set to continue unabated. Disproportionate increases can be expected here.
Styrenics: The wheel has turned. After the boom of the previous months, the SM reference contract’s significant decrease by EUR 275/t has initiated the anticipated price correction in April. Across the board, styrenics could not maintain their previous record levels anymore and had to take significant losses. Just as increases were not transferred in full during the price rally, the current price change was not transferred in full either. ABS was additionally encumbered by the development of butadiene (rollover) and ACN (increase). Earlier, falling spot market prices had already pointed at another significant decrease of the SM reference contract in May, which let many processors trim their orders in the second half of April to minimum volumes. The sheer amount of the SM reduction still surprised many players. Just as in April, the May cost reduction of EUR 245/t will probably not be transferred in full, but buyers can again expect three-digit price reductions for all styrenics – including for ABS, whose composite butadiene also plummeted by EUR 225/t.
PET: The European PET producers’ hopes of being able to benefit further from the upcurrent of the previous months were shattered in April 2017 when refreshing gusts blew in from the Far East. Notations in the polyester chain had fallen sharply there at the end of March and, as if by magic, import offerings at particularly favourable conditions landed on the European purchasers’ doormats. At the same time, the cost of feedstocks for production in Europe fell. Purchasers rapidly switched to exercising pronounced restraint. Suppliers were thus left with no other choice but to grant discounts. And they did not get by with just passing on the reduction in costs. Instead, they had to relinquish the slight improvements they had achieved in their margins over the past few months again. Regrind remained firm at mid-month, still awaiting on post-Easter developments. The price drop for primary material would appear extensive enough to trigger reductions here too in the near future. In the meantime, while the Asian polyester chains have calmed down again, a weakness in the base material oil would seem imminent. Imports are still being offered at increasingly favourable conditions, with prices moving below four digits in some cases. Seasonal business for bottles should pick up in May, with demand gaining momentum. Buyers are still hesitant, however, in light of the continuing downwards trend. From the current standpoint, it would seem that at least moderate reductions could be on the cards.
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For more than 34 years, PIE has been an invaluable source of information for European plastics industry decision makers - a quick, yet in-depth look at the development of plastics markets and polymer prices. Available online 24/7 and as a printed newsletter twice a month. To read the entire report, go to www.pieweb.com and sign up for a 48-hour free trial!
Engineering Thermoplastics April 2017: Wave of increases rolls on through the market / Rises smaller than in March / Market tending tight / Some delivery times lengthen significantly / Effects could last into May
As expected, prices for engineering thermoplastics in Europe continued to increase throughout April. As the impulses from the feedstock markets declined, there was a considerable amount of catching-up to do on the open market following the high quarterly agreements. In addition, availability was particularly tight with many types. Delivery times lengthened considerably and, with PC for example, are now as long as 20 weeks. Polyamides also tended ever tighter. In the case of PMMA, allocations have become the order of the day. At the same time, many buyers were nervously on the hunt for extra material because the end markets were ordering at a lively rate. The commodity-related PP compounds, on the other hand, rose only marginally in line with the C3 reference price. ABS reflected the easing of the feedstock situation and dropped from its record level for the first time, often by a triple-digit amount. Prices are nevertheless still very high.
The situation remains especially tense with PA and PMMA. Here, substantial increases are to be expected again in May, which can certainly run into triple digits. With the other types covered by this report, there is a latent upward pressure, but this could well be dampened by the falling tendency in feedstock notations. The flurry on the demand side is also likely to ease slightly because automotive demand in particular is gradually returning to its normal level.
For more than 34 years, PIE has been an invaluable source of information for European plastics industry decision makers - a quick, yet in-depth look at the development of plastics markets and polymer prices. Available online 24/7 and as a printed newsletter twice a month. To read the entire report, go to www.pieweb.com and sign up for a 48-hour free trial!
Polyurethane Feedstocks April 2017: All components higher, isocyanates by triple digits / Hefty hikes for polyols / Momentum slackens but May will still see increases
Upward price pressure for polyurethane components is showing no signs of sputtering. As if TDI had not risen high enough over the past months, April notations took another triple-digit leap on the back of global momentum, even if the pace in Asia dissipated. MDI, which in the past had lagged TDI, also made triple-digit gains, thanks to a combination of production limitations at major European plants and healthy export prospects. Flexible polyols prices moved higher on the back of the tightness of starting material propylene oxide, while rigid polyols were driven upward by unexpectedly lively demand.
In the coming weeks, MDI can be expected to make solid gains, even if market dynamics could soften. For TDI, signs that the upswing is reaching a plateau – albeit at a record level – are increasingly being seen. The momentum for higher polyols prices is also likely to ease, although the drive for both the rigid and flexible grades appears to be slackening.
For more than 34 years, PIE has been an invaluable source of information for European plastics industry decision makers - a quick, yet in-depth look at the development of plastics markets and polymer prices. Available online 24/7 and as a printed newsletter twice a month. To read the entire report, go to www.pieweb.com and sign up for a 48-hour free trial!
Composites/GRP April 2017: Only large accounts profit from sinking SM price / High resins prices dampen demand / Projects postponed / Glass fibre impacted
The average price for ortho resins remained unchanged in April, although the PIE range shows vast differences in pricing, depending mostly on the size of the customer. While large accounts profited from rebates on the back of flagging styrene notations, small and medium-sized accounts faced additional, if slight, increases. Distributors, who had been hoping for lower prices, were disappointed for the most part. Bottlenecks for phthalic and maleic acid anhydride did not have much of an impact last month. In the next price round, it will be interesting to see how much of a role the EUR 300 - 400/t rise in the maleic acid anhydride notation plays.
The high prices depressed demand, with converters buying only what they immediately needed and some opting to postpone projects. The cumulative fall in the styrene price totalled EUR 520/t. As inventories are practically drained, resins prices will not decline as substantially as they might otherwise, however. PIE expects to see concessions of at least EUR 40/t, possibly more. This would help to enliven demand, which has stagnated at a high level.
Rebounding demand for glass fibre products should result in a higher order volume. At the beginning of the second quarter, prices for all grades covered in this report remained unchanged against the first quarter; however, the downward trend could well turn around in this year's third quarter and point slightly upward. As the EU's new anti-dumping tariffs on Chinese goods begin to take grip, European producers may want to test their own negotiating power.
For more than 34 years, PIE has been an invaluable source of information for European plastics industry decision makers - a quick, yet in-depth look at the development of plastics markets and polymer prices. Available online 24/7 and as a printed newsletter twice a month. To read the entire report, go to www.pieweb.com and sign up for a 48-hour free trial!
Standard Recyclate April 2017: Oversupply provokes slight erosion of rPE prices / rPP and rPS mostly stable / Seasonal effects supporting rPET / Diverging trends will continue in April
Inexpensive spot market prices for virgin materials exerted pressure on transparent rPE grades. Prices for rPP remained broadly stable because seasonal effects from the automotive and construction industries supported prices, as did a structural tightness on the virgin materials market. An overabundance of rPS stopped the material’s previous upwards trend. Additionally, processors took advantage of the slump in virgin material prices to stock up. rPET flakes went up in an attempt to close the still huge price gap towards virgin material prices, especially the clear grades.
Because of a very good supply situation, rPE will see further price erosion while rPP is stabilised by a long-term supply shortage. rPET should likewise see only minimal movements as the effects of the beginning of the beverage season and declining virgin material prices are cancelling each other out.
For more than 34 years, PIE has been an invaluable source of information for European plastics industry decision makers - a quick, yet in-depth look at the development of plastics markets and polymer prices. Available online 24/7 and as a printed newsletter twice a month. To read the entire report, go to www.pieweb.com and sign up for a 48-hour free trial!
Engineering Recyclate April 2017: Recent price increases across the entire portfolio / Boom in demand / Availability of production scrap considerably tighter in some cases / Demand only minimally slowed by holiday period
The upward movement in recyclate prices continued on into April in the wake of skyrocketing prices in the primary sector. All secondary materials rose by up to EUR 150/t once again. The increase was driven by automotive engineering materials, among other things. While these have been less affected in the past, the fixed prices of primary material for the first quarter have now lifted considerably. Exceptions here are rPP compounds, which rose to a lesser extent by EUR 50/t.
Since the recycling companies already had well-filled order books, extra shifts were required to satisfy demand. This was curtailed to a much lesser extent than had been expected by the holiday period. Availability of production waste as a base material was fairly tight. The situation was worst for polycarbonate, where the market has practically dried up.
The situation should calm down somewhat in May with its large number of public holidays. And for rABS, the rise could even switch to a corresponding fall, now that primary ABS has been somewhat more obliging of late. The upward movement in production scrap, however, seems set to continue over the next few weeks.
With delivery times of up to 20 weeks in the primary sector, purchasers of polyamides and polycarbonate, for example, are desperately looking for material – with the price playing more of a subordinate role here.
For more than 34 years, PIE has been an invaluable source of information for European plastics industry decision makers - a quick, yet in-depth look at the development of plastics markets and polymer prices. Available online 24/7 and as a printed newsletter twice a month. To read the entire report, go to www.pieweb.com and sign up for a 48-hour free trial!
