Price Reports April 2018

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!

Articles: April 2018
Standards Thermoplastics Engineering thermoplastics Polyurethane Feedstocks	Composites/GRP Standard Recyclate Engineering Recyclate

 

 Standard Thermoplastics April 2018: PE tends weaker / Passing on of costs fails with PP / PVC slightly stronger / PS prices slide along with SM / Scarce PET jumps unexpectedly higher / Higher olefin costs in May

PE: The price increases for European PE materials in April were predominantly confined to types for which buyers here were competing with buyers from abroad. The pipe segment, bolstered by the lively demand from India, registered a double-digit euro increase, while the HD injection moulding grades competed with the Chinese market in the lower end of the price range. The situation is different with the film grades. Influenced by the surplus of LDPE, there were reports of price cuts over a wide range despite the increase in the ethylene reference. Rollovers dominated with injection moulding material, HD blow moulding grades and EVA. Converters’ tactical purchasing behaviour generally prevented producers from passing on the proportionate costs.  In May, it will be difficult to avert price hikes on a broad front in view of the increased production costs. Suppliers face the problem of high naphtha notations combined with a falling euro. The ethylene reference for May was agreed at EUR 20/t higher. It is safe to assume that producers will call for significant increases from their customers in order to prevent any margin losses. On the other hand, demand is likely to continue comparatively weak due to the many bank holidays, so that margin concessions are likely to be the exception rather than the rule. Nevertheless, buyers are expected to call off material in line with their contract agreements. A factoring in of the proportionate costs could therefore be in store.

PP: Some PP producers kicked off April with announcements of price increases that proved difficult to pass on. Any hikes pushed through were at the bottom of the range. In most cases, not even higher production costs could be passed through as order volume was slack, due to the Easter holidays. Compounds generally rolled over.  May with its many bank holidays is unlikely to see any revival of demand. Yet producers may still announce price increases in the hope that they can pass on not only the EUR 25/t increase in the C3 contract but also recoup margins that most forfeited in April. Producers of compounds at least have good chances of achieving at least part of their target.

PVC: After the first two months of the year were characterised by brisk demand, the situation has now returned to normal. As a result, PVC producers were unable to push through their sought-after hikes of up to EUR 20/t. On the European market for base products, the share accounted for by ethylene costs was passed on in most cases, at EUR 5/t. The market situation for additives has generally calmed down in the second quarter. Neither titanium dioxide nor plasticisers dictated the direction in which prices moved. Hence, for PVC compounds, it was primarily the momentum of the base product that made its mark. Demand for paste grades is still brisk but, in this segment too, it was not generally possible to up the price by more than the pro-rata costs.  In May too, producers see themselves confronted with an increased ethylene reference price. However, given that the market is balanced overall, producers will have difficulty in improving their margins. The situation with paste grades is a different one. With demand running high – including from Eastern Europe – these may experience a disproportionately high increase.

Styrenics: The significant cost reduction of SM by EUR 125/t in April has put an end to an upward trend that has lasted for four months. Styrenics prices have largely followed the cost reduction, so that PS and EPS have recorded three-digit reductions across the board. The discounts on ABS, however, were moderated by increasing costs for butadiene, which went up by EUR 75/t, and for ACN, which increased by EUR 5/t.  Consequently, processors were rather reluctant buyers in April because they were expecting another SM cost reduction and thus decreasing prices for styrenics. Apparently, they were right. After the decrease of the SM reference contract in May by EUR 40/t, the same is likely to happen to PS and EPS prices. ABS prices, on the other hand, are counterbalanced by a EUR 60/t premium on butadiene, and while the price of ACN was not yet available at press time, it is likely to also go up – all in all, this will result in stable prices or, at most, a weak rollover.

PET: April saw the spread of hikes throughout the European PET market. Individual market niches had already had to accept increases over the previous months, especially for longer-running contracts with unusual frequencies. And now the market as a whole was affected. What had previously been a more or less balanced market switched to short supply after Easter. Not only were there supply restrictions for the feedstock PTA, but demand skyrocketed in parallel on account of the exceptionally hot weather that prevailed in some cases. This prompted a rapid increase in prices.  Midway through the month, increases emerged for regrind. This was less a case of following suit and far more a direct reaction to the market situation. Clear secondary material has already risen to EUR 1,100/t or more.  Further increases could result in May. Although the operators have announced that the disruptions for PTA will have been resolved by mid-May at the latest, it will be some time until the pipelines are full. No help is in sight from the import world on account of the restructuring of the Chinese market. Purchasers have become more cautious and are doubtless intent on keeping their raw material warehouses full, with an eye to the upcoming season. If hot spells like those in April occur in May, this could be accompanied by acute demand too.

 

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 2018: Upturn continues / Tough quarterly negotiations drag on / Many types stagnate due to lack of orientation / Faster rises expected in May

In April, the record-breaking price upswing for engineering thermoplastics in Europe continued. The stability with some grades was in most cases due to the lack of a guideline from the quarterly agreements that are still under extensive negotiations. Virtually all types and grades continued to be short, with PA 6.6 again taking the biscuit despite positive news at last with upstream ADN. Here, players are currently experiencing just how long the complex chain of original nylon can be. After the Easter break, demand picked up again at the beginning of the month and more or less returned to normal, although the momentum does not seem to be quite as great as it has been recently.

The two exceptions in April were the commodity-related materials, ABS, which slumped in line with feedstock costs, and PP compounds, which crawled sideways due to a lack of stimulus from feedstock. With PMMA, the peak has now finally been reached. Although it remained stable at a very high level, some players were daring to talk about a potential decline.

The price hikes announced by producers for nearly all engineering thermoplastics are so high that at least some of them will inevitably be reflected in notations before the month’s end. It is likely that the upward pressure across the whole market in April will be carried over directly into the merry month of May. In the case of PMMA, there are signs of prices crumbling for the first time in around two years.

 

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 2018: Price gap between MDI grades widens / TDI firmer / High notations put brake on demand

In April, most supply contracts were settled at a rollover. Here and there, prices declined slightly, by EUR 15/t on average. By contrast, pure MDI has been gaining ground on the polymeric grade, and this trend continued into April. For TDI, a rollover was more or less the rule at the beginning of the month. As April progressed, however, the trend turned sharply around and pointed upward. With it, some especially low prices began to be pulled up. Starting material toluene also gained ground. Polyols prices remained unchanged to slightly softer, despite the limited availability of the flexible grade and the high prices for TDI, which depressed demand.

In the coming weeks, polymeric MDI is likely to point farther downward. Starting material benzene gave way somewhat at the beginning of April, demand is only modest and on the world market the material is coming under pressure. Over the past year, pure MDI prices have gained a surprising amount of ground against the polymeric grade, and producers will do all they can to cement this trend. TDI continued somewhat firmer in April, but the market continued to be plagued by uncertainty.

For all isocyanates, demand will remain only modest, due in part to the many bank holidays in May. While for MDI few supply constraints are being seen, TDI remains somewhat tight. At the start of the second half year, notations should begin returning to normal, due to the expected higher output at BASF.

 

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 2018: Resin points downward / More rebates certain in May / Glass fibre products mostly unchanged / Demand still robust

Ortho resin prices declined slightly, by EUR 15/t on average, in April but price trends varied across customer groups. While large accounts for the most part could pocket rebates in line with the reduction in the cost of styrene monomer, some medium-sized converters actually had to pay more. From the converters’ perspective, the price relief was welcome after difficult negotiation rounds with customers in the end-markets. On the whole, resins should point downward again in May after the styrene monomer price dropped by a further EUR 40/t. Phthalic acid anhydride could slow the downward momentum somewhat, due to two as yet unconfirmed outages that may well lead to some tightness and as a consequence higher prices.

Notations for glass fibre-reinforced products remained mostly unchanged. Standard chopped strand mats saw marginal increases at the lower end of PIE's range. For the higher-end mats, cheaper material was available. Due to the longer contract running times, no substantial price movements are to be expected before the contract for the third quarter is fixed.   

 

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 2018: Demand from China leads to first bottlenecks / rLDPE and rHDPE films much stronger

China’s import ban on plastics waste and the resulting boost in demand for recyclates is leaving deep marks on the European market. Stock capacities for film grades are continuing to shrink. In addition to volume calls from the Far East, domestic demand is increasing with the season, even if the Easter holidays shortened production and widely dampened demand. This price dampening effect also led to a rollover of most of the remaining polyolefin recyclates and of rHIPS. The rPET market was still under the influence of the tense primary market in April and prices rose considerably.

Short supply for film grades is likely to persist in May. Recyclers are therefore expected to call for hikes. Demand in seasonally driven markets will probably increase with rising temperatures, however, May will bring a series of bank holidays. The overall balanced market situation gives reason to expect horizontally moving prices for the remaining HDPE and LDPE grades. The situation, however, looks quite different for rPET. The previous months’ upswing is likely to continue and even to accelerate with the start of the beverage season.

 

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 2018: Little change this month / Upturn probable in coming weeks / Demand quite reasonable of late

In April, prices of engineering recyclate have so far remained stable at their previous high levels – a consequence of the expensive base material, which left little scope for manoeuvring. Against this background, delivery times were often as long as four to six weeks. The somewhat weaker demand in March has recovered and capacity utilisation has been reasonable.  In the coming weeks, the price of primary ABS material is likely to fall, and this should also mean that the base material becomes a little less expensive for recycling companies. Buyers of recycled material are therefore likely to call for a price reduction.  With most of the other primary materials – especially the polyamides and above all PA 6.6 – there still seems to be some room for price increases, and this will almost certainly also mean a higher cost of recyclate when the cost of the base material rises.  Supply is still fairly short in many areas, but this is likely to ease slightly in May if demand declines as predicted.

 

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!