Price Reports April 2022

The following information is provided by Plastics Information Europe.  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 entire versions of the following reports, go to www.pieweb.com and sign up for a 48-hour free trial!

  Standard thermoplastics April 2022: Producers push prices as high as possible / May expected to witness rollovers for many grades, price plateau / Exceptions: PVC, styrene / Ukraine war continues to cause uncertainty in the market

PE: The rise of EUR 230/t in the April C2 contract dictated the route taken by LDPE films: prices namely climbed across the board. Negotiations were relatively tough, and some converters shut down over the Easter holidays to extricate themselves from the price spiral. In April, energy cost increases were once again factored in, even though, in reality, they declined slightly. At least the reports of forces majeures and maintenance shutdowns tend to stay low, so European production managed to largely meet the demand. It was just unfortunate that, because of the problematic logistics situation, imports did not arrive as hoped – and consequently did not lead to any easing of prices. For May, the C2 price has turned around, recording a fall of EUR 70/t. Also, because the energy cost increases have already been factored in, all the signs point to a rollover, with a price plateau likely to form in May – especially also with pipe grades. The increased arrival of imports should strengthen this trend, so that buyers should not have to worry about their contracts being met in May. On the other hand, the war in Ukraine is causing further uncertainty on the market. Summing up, this means that all players will continue to proceed cautiously until the situation improves.

PP: The massive rise of EUR 225/t in the C3 reference price for April propelled notations for polypropylene to record heights. Producers attempted to pass on the C3 rise as well as their higher energy costs. Converters resisted, however, especially as energy prices started to come down as the month progressed. With buyers staging a de facto order boycott, PP notations began to crumble. On the whole, demand was slack. Automakers shuttering production lines had an impact on the injection moulding segment, and compounders adapted their output to the weaker demand. Buyers of film grade also held back purchases, hoping for lower prices in May. With the EUR 65/t decline in the C3 contract for May setting a signal, market watchers expect that at least large accounts will be able to negotiate better terms. For smaller accounts, they are sceptical, however, as producers will try to recoup the increases they had to forego in April. Over the month, the PP rally could very well end, levelling off prices.

PVC: The upward trend continued unabated in April 2022. There was also little change in the reason given for this – prices for the base material were being driven up by higher costs (C2: up EUR 230/t) and the limited supply situation. In light of the increasing shortage, producers were also able to add on an energy cost component. Compounds also became more expensive in the slipstream of hikes for the base material and additives. And what is to be expected in May? Further increases are on the horizon. In the case of compounds, prices will then have been moving exclusively in the same direction for a full two years, and even base materials will only have experienced two short rollover breathers from the upward trend over this entire period. In May, producers will once again cite limited availability as the reason for renewed upticks. In view of limited supplies, the C2 contract development has once again become a minor concern.

Styrenics: The sharp increase in styrene costs in April (up EUR 360/t) drove all styrenics prices to new record highs. As for ABS, the prices of the other components, butadiene and CAN, shot up by EUR 200/t and EUR 400/t, respectively.

In addition to passing on feedstock costs, most producers of PS, EPS and ABS also added an extra component to absorb energy costs, which have also risen sharply. However, as energy costs declined again during the course of the month, some producers revised the extent of the premiums. As a result, the price range of the agreements was quite wide, especially for PS and ABS. The supply situation for PS and EPS was quite tight, due in particular to the limited availability of the precursor styrene. ABS was more readily available – the commissioning of new production capacities has brought relief to a market that had long been undersupplied. Also, demand weakened because many processors put brakes on their orders in view of the recent peak prices. Apparently, several had increased their stocks in anticipation of a price rally. Meanwhile, demand for EPS remained quite high, with processors buying all they could get. Further price increases for styrenics are on the horizon after the styrene reference for May went up by another EUR 84/t. In ABS components, ACN also rose by EUR 14.50/t and butadiene recorded a rollover.

PET: Following a rather turbulent March, the feared continuation of stark price increases on the European PET market did not materialise in April. Previous signs of panic over volumes subsided very quickly, because, even though demand was livelier than before – as is normal at the start of the season – overall ordering remained significantly below expectations.

The mood among consumers deteriorated considerably as a result of the many uncertainties affecting the market, and is now even worse than during the lockdowns of the past two years. At the same time, oil prices trended down, and there were reports of the potential arrival of PET imports from Asia in May and June, which led to a certain easing of tension among buyers. Consequently, there were only occasional catch-up price increases, especially at the lower end of the range. In structural terms, the ever-more-complex situation led, in the course of the first quarter, to significant differences in contractual conditions. At present, tough individual negotiations tend to be the most frequent outcome, and it will probably take some time until the right, more generally valid, models take shape for future contracts. For the time being, comparability of quotations should therefore be treated with caution, and a readjustment based on each individual case should possibly be recommended. For May, there are indications of a slight downward pressure on prices. The PX reference contract is expected to roll over in April after the jump in March, so there should be no cost pressure from the feedstock side. The production situation looks largely stable. Apart from that, imports are expected to arrive from Asia in May. The big unknown, and thus what will tip the scales, is how demand will develop. At present, it looks rather subdued. Accordingly, the picture is likely to show somewhere between a rollover and a small reduction.

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 2022: Prices jump again / Hefty hikes for all types / Southern Europe particularly hard-hit / Demand still largely weak / Further increases likely in May

Despite weak demand, prices for all engineering thermoplastics saw triple-digit rises in April. It was the same as the previous month except increases for all materials were even higher. The reasons were massive uncertainty from the geopolitical situation and related cost rises for raw materials, energy, and transport.

Typical was the enormous range of price movements. The biggest disparity was seen with POM natural, with reports of anything between a rollover and increases of EUR 1,000/t. This massive volatility makes it difficult to compile a report that reflects the overall market. In this environment, PIE figures only represent a statistically weighted approximation.

As such, the PMMA price led the way with an average increase of EUR 400/t. POM went up EUR 350/t, and PBT and PA 6.6 rose EUR 300-350/t, depending on type. Price increases in Southern Europe were even higher than on the rest of the Continent.

The high-price phase is expected to continue in May. The reasons are the same – further rises in costs for raw materials, energy, and logistics. Conversely, many market observers say some price increases will be much smaller.

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 2022: Uncertainty, massive markups dominate situation / Some absurd price demands blamed on rising energy costs / Supply of MDI could be smoother

April has also been marked by industry-wide uncertainty and quite a bit of hullabaloo. A number of producers are trying to take advantage of the situation and are making price demands that they know are absurd: between EUR 500/t and EUR 750/t are beyond the pale. The result is significantly lower rates. But distrust on the part of the processors is growing.

It doesn't help that availability is solid. Sufficient quantities in the market ensured that contracts – and also some wishes beyond that – could be fulfilled. Shortages remained imaginary.

As long as the Ukraine war continues to rage, the costs of energy and transport are likely to determine negotiations in May as well. The bad news for processors is that the only way is up. If demands of EUR 500/t and more continue to be made, the mood in the market could tip at some point and the party will be over.

Construction and automotive continue to play opposite roles. While the first is ordering well (house builders love good weather), Germany's darling manufacturing sector just isn’t getting into gear. At least most processors have now filled their warehouses to such an extent that delivery times, which are occasionally kept artificially high, are of little consequence.

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 2022: Prices still shy of peaks / Demand soft / May moves to range from rollover to slight rises / Glass fibre roving firmer

The already high level of resin prices dominated market movement and weakened demand in April. With the styrene reference price soaring, it was hardly surprising that small and mid-sized buyers of medium reactive ortho resins also had to dig much deeper into their pockets for these products. Hikes ranged up to EUR 150/t. Prices for the other starting materials, including phthalic acid anhydride and propylene glycol, also firmed again after slipping back earlier. Here and there, some large transactions saw a rollover. Buyers with quarterly contracts also were confronted with substantially higher prices.

The May styrene contract rose EUR 84/t, reflecting the uncertain supply situation and the extreme volatility of the energy markets. Forecasts had seen swings of around EUR 100/t in either direction. With an increase now a reality, it is clear that buyers will see no respite. Prices could most likely rise again, at least slightly. However, depending on the size of the order, some rollover are possible.

At the JEC global composites trade fair in Paris, soaring resin prices likely dominated the conversation. Converters and distributors are not building inventories and, all in all, are in no mood to order. Most will pay close attention to the development of glass fibre prices, which in some cases are clearly firming again.

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 2022: Material bottlenecks, high virgin material prices drive up recyclate prices / Quantities are often only sufficient for regular customers / Further inflation in May as demand grows

The strong increase in virgin polyethylene prices was reflected, although to a somewhat lesser extent, in recyclates. With few exceptions, recyclers were able to enforce their demands on the market, and mostly without any major discussions. In their search for polystyrene and other thermoplastics, more new customers entered the recyclate market due to the shortage of virgin materials, which put recyclers in a good negotiating position.

Production scrap was sufficiently available for a majority of the reported grades and types. Sometimes, however, only regular customers could be supplied at normal levels, while additional volumes were scarce. High-quality grades were particularly sought after, but difficult to obtain and expensive. This was particularly true for PET scrap and recyclates. Demand from the agricultural and construction sectors increased; automotive stagnated.

Further increasing production scrap costs and high energy prices will almost inevitably lead to renewed price increases in May. With supply mostly reasonably balanced, recyclers will at least be able to serve their regular customers properly. Additional volumes, however, remain a difficult issue. More pronounced bottlenecks in the availability of both primary and secondary materials are also likely to arise here and there. Slightly declining scrap material volumes and the continuing poor availability of additives are limiting the output of tube grades, for example. Demand could thus noticeably exceed supply in this market sector.

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 2022: Prices trend generally up in line with virgin material / Shortage of base material reaches new high / May expected to see further small increases

Substantial price hikes on the primary market made it easy for recycling companies to push through increases in April. The shortage of many additives also had a price-lifting effect. Polyamide material, on the other hand, generally remained unchanged – with the exception of the black grades which, surprisingly, were much in demand from the automotive sector.

Base material was, as earlier, very short. More and more converters are hanging on to their production scrap and are thus depriving the market of much of its important base material. In some cases, the small quantities that were still around were reported to have various defects. Demand varies significantly, especially in car production.

Because it seems that the primary market cannot settle down, rising prices for recyclate are also to be expected in May. The severe shortage of base material will contribute to this. On the other hand, it is almost impossible nowadays to speak of a real connection between incoming orders and purchase prices because, in many areas, the development is purely speculative.

With the decline in the recent stock replenishing activities by the automotive sector, ordering activity will fall back again to a normal level. Domestic appliances and the other E&E applications will benefit from this, because more material will now be left for them.

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!