Price Reports April 2019

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 2019
Standards Thermoplastics Engineering thermoplastics Polyurethane Feedstocks	Composites/GRP Standard Recyclate Engineering Recyclate

 

 

Standard Thermoplastics April 2019: Producers win marginal hikes in margins at most for polyolefins and PVC / SM drives up styrenics / PET remains weak / Suppliers plan May offensive

PE: European PE producers crossed what, from their point of view, was the first hurdle in April 2019 as most of them managed to pass on their increased costs in full and thus bring the margin decline to a halt. In some cases they were even able to win the first – albeit very small – margin gains, especially in large-volume businesses with the film grades. All injection moulding grades, on the other hand, were below average. Because April was split into two halves by Easter, business was calm at the beginning of the month, but afterwards the volume of incoming orders started to rise considerably. The rising prices of oil-based products with the prospect of subsequent cost increases for petrochemicals began to lift demand in the second half of April, so that the latest rise in the ethylene reference, the start of the cracker maintenance season and the long working month of May will certainly not have any negative influence on business activity this month. Against this background, significant price increases right across the PE portfolio can be expected.

PP: European PP producers would have loved to substantially improve margins in April 2019, but demand was too weak to do much more than pass on the EUR 20/t increase in the propylene reference contract. Due to their tenacity, they were at least able to pull low-lying prices up. For compounds, all they could do was factor in the cost increase, as already agreed. Producers of standard grades at least stand to achieve more substantial margin improvement in May. The livelier demand will meet a still-short supply, as post-Easter ordering in the last week of April indicated. Despite this, producers will not be able to make large price strides as demand generally is too weak. Compound prices will remain in the doldrums, anyway, due to the soft automotive demand.

PVC: In Western Europe, a clear majority of contracts for both S-PVC base and E-PVC were settled with an increase equivalent to the pro-rata ethylene reference. Despite various production bottlenecks, sufficient quantities were available to customers. The Easter holidays had only a slight impact, mainly due to reduced activity at customer companies. With additives, TiO2 remained stable, while plasticisers, flame retardants and stabilisers tended upwards. The situation on the cost side points to a further increase in PVC notations. Due to poor caustic soda prices, producers are also under growing pressure to increase their polymer margins. The hikes will thus reflect the rise in costs at the very least.

Styrenics: In Western Europe, the EUR 97.5/t increase in the styrene reference for April 2019 contributed to the continuing rise of styrenics prices. However, the increases did not always reach the full extent of the cost increase. On the one hand, demand was restrained, especially for PS and ABS. On the other hand, many processors kept order volumes as low as possible after the sharp increase in prices, relying on their inventories instead. There are signs of further hikes in May, but these are likely to be more moderate than in the two previous months. The SM reference rose by EUR 32.5/t for May, and as usual, this should be regarded as a guideline. However, a dampening effect is stemming from the low mood in the economy and the rollover of butadiene in the case of ABS.

PET: European PET suppliers had hoped that demand would pick up in April with the arrival of spring. They were disappointed, however, and demand remained on the sluggish side both up to and during Easter. At the same time, imports were not unfavourable and costs developed sideways. This meant that producers even had to reduce prices in some cases, especially where these had previously been at a high level. Most medium- and large-sized orders were settled at a rollover. The price of secondary PET also remained stable. Notations should stabilise or firm in May. Oil prices have risen and there are fears of an increase in petrochemical costs. This is the minimum that suppliers would wish to pass on. It is the development in demand that will be the decisive factor, and demand ought to pick up. Depending on how pronounced the trend is, the range is set to extend from rollovers to noticeable increases.

 

 

For more than 35 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 2019: Producers regulate supply to keep notations mostly stable / Demand remains slow / Price cuts for polyamides probable in May

In April 2019, the measures taken by European producers of engineering thermoplastics to control production and supply went as planned. Adjusting output to the sluggish demand created stability in a range of areas. For the classic engineering materials, there were price reductions only with the PMMA grades that are heavily influenced by global developments. This represents a further step towards normalisation following the long-lasting intensive high-price phase due to the earlier shortages of MMA that are now a thing of the past. Prices of the commodity-related products, on the other hand, climbed in the wake of the rises in the respective base materials. ABS increased significantly more than the PP compounds.

In May, there are no signs pointing to an improvement to the delicate situation in automotive production. However, due to the many work days this month and the arrival of spring, business is expected to pick up in other sectors. Producers are nevertheless likely to find it hard to factor in the gradually rising costs. In fact, the polyamides seem to be under considerable price pressure. Here, price cuts could well be in the cards, especially as these types are influenced even more by automotive applications than other engineering plastics. ABS and PP compounds will, as usual, follow the respective raw material prices, although probably with some delay.

 

 

For more than 35 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 2019: MDI firms / TDI decline continues / Building boosts insulation / Auto slump dogs flexible foam demand

In April, price movements for the isocyanates covered here continued mostly parallel to March. MDI firmed somewhat more than expected, but this was not entirely surprising. TDI continued to be pressured by the very weak automotive demand.

The EUR 82/t rise in the benzene contract helped push MDI higher. Only a few buyers were able to achieve a rollover, as producers were bent on improving their margins in a rock-bottom pricing environment. Demand continued to improve and meanwhile has returned to a point close to the seasonal average.

TDI was under pressure due to weak demand for flexible foam, mainly from the automotive sector. New car registrations in Europe slid back further – in March alone, by nearly 4% on average in all major markets. The deterioration was especially marked in Italy, but Spain and the UK also saw a steep downward trend.

With demand for MDI on the rise, notations are likely to begin pointing upward in the coming weeks. This should reflect for the most part the opening arbitrage window to Asia. In China, prices have risen sharply of late. Wanhua, for example, within a short time pushed through increases equivalent to several hundred euros, settling out at around EUR 2,300/t.

Extreme volatility within the industry and widely varying transaction terms make a forecast for TDI somewhat unreliable. Based on input from PIE's talks with converters, the most likely scenario appears to be further price deterioration. On the whole, demand for flexible foam looks likely to remain below expectations, with order volume very unsatisfactory for this time of year.

 

 

 

For more than 35 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 2019: Resins prices start to rise / Automotive demand still weak / Glass fibre notations unchanged

Ortho resins prices gained EUR 30/t on average in April. In view of the surge in the reference contract for principal resin feedstock styrene at the beginning of the month, which has only partially been passed on, there is room for fresh hikes in May. Throughout April, demand weakness continued to keep a lid on prices. There were few supply restrictions other than a slight tightness for phthalic anhydride. Glass fibre prices saw scant momentum.

In May, the price rises of EUR 70/t for phthalic anhydride and EUR 32.50/t for styrene should drive resins higher. The market could see a hike of EUR 20/t or more, if demand rebounds strongly. The auto industry seems to be emerging very slowly from its seasonal lull and at mid-year is likely to still lag behind industry generally. Small- and medium-sized converters for the most part are holding back on ordering and probably will continue to do so until mid-year.

 

 

For more than 35 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 2019: Prices mostly stable / Demand to decrease

In April 2019, most recyclate prices in Western Europe remained at the previous month’s level. Even if many price increases had been announced, recyclers were only able to enforce them on individual grades – and only partially. Their ambitions were curbed by reduced purchase volumes in the run-up to the Easter holidays, in the case of rLDPE, or by already impressive price levels, as was the case for rHDPE and rPET.

Still, delays are not denials. Recyclers intend to catch up on the missed price hikes in the weeks to come. This is necessary to offset the higher costs of land, labour, energy, transport and waste disposal. Their demands are supported by increasing virgin material prices, a trend that is likely to continue.

 

 

For more than 35 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 2019: Notations largely stabilise / Lower demand

Prices of most engineering recyclate products on the Western European market stabilised in April. Only with a few individual grades of polyamide 6 and polycarbonate recyclate were there reports of further moderate falls. Base material was generally adequately available because demand was lower due not only to the Easter holidays but also to the continuing weakness of the automotive segment.

Recyclate suppliers are hoping that business will improve in May. However, as things currently stand, there seems to be little scope for major changes.

 

 

For more than 35 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!