Price Reports April 2024

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 2024: Mark-ups on polymer prices remain mostly below the monomer's / PVC, PS experience slight upward trend / Downward trend expected across all types in May

PE: Calls by some suppliers for price increases more than the EUR 40/t rise in the cost of the monomer were in most cases rejected by converters without argument. After all, demand also remained weak in April, and supply was additionally boosted by imports. As a result, prices for the readily available commodities increased only slightly. Specialities did not go along with this trend to quite such an extent because there was no competition from imports here, and producers were often able to factor in the full increase in the cost of C2. On the customer side, the food and beverage segment is beginning to buzz – thanks to the warm early-summer temperatures. Applications for the construction industry also picked up slightly due to the start of the season, as was evident in the pipe segment, among others. At present, new orders are only being placed on the basis of price. Overcharging will generally mean waiting in vain for orders, and business is also likely to remain very slack in May because – according to more than just economic experts – there is still far too little activity in the overall economy here. Not least for this reason, polyethylene prices in May are likely to be under pressure. Through the reduction of EUR 10/t in the C2 contract, the direction in which prices will move this month is more or less in the cards – namely downwards.

PP: In April, weak demand and a better supply situation due to imports thwarted suppliers, who wanted to fully factor in the recent increase in the propylene reference price (up EUR 45/t) in April. In order to place volumes onto the market, they had to cut back on mark-up amounts and, in some cases, prices were simply carried forward at the previous month’s level. There was less pressure on specialities from European production due to a lack of alternatives. Demand was reduced not only by the fact that some processors resumed operations with a certain delay after the Easter holidays. They also speculated on falling prices in the summer and adjusted their order activity accordingly by drawing more heavily on their stocks. It seems they won’t have to wait long for prices to fall – the C3 reference fell by EUR 10/t in May. And as there is still a lack of momentum on the demand side, with new imports continuing to drift in, processors will probably be able to achieve discounts in May that go slightly beyond the monomer’s change. 

PVC: European PVC prices ticked slightly higher for the second month in a row. Most agreements passed on half the cost of the ethylene contract (up EUR 40/t). However, the range of increases in April was somewhat wider than in previous months. The reduced output of European facilities was sufficient to cover the weak demand. As before, only few converters turned to imports since they have no major advantage in terms of price. While noticeable here and there, the seasonal rise in demand that traditionally kicks off in April is considerably below usual levels. There’s still a lack of impetus from the large markets – France and Germany – but sales were somewhat better in neighbouring countries like the Netherlands and Poland. For the current month, it looks like the ethylene contract, which was fixed EUR 10/t lower, will end the uptrend in quotations. Producers are expected to try to keep the price level stable. Even if demand from converters picks up again, ordering is unlikely to be sufficient to result in a balanced market. Prices are consequently projected to decline again.

Styrenics: In April, the prices for styrenics trended upwards for the third month in a row, albeit not quite as strongly as in the two previous months. In the case of polystyrene, suppliers insisted on pricing in a large part, if not the entirety, of the increase in the styrene reference (up EUR 44/t). For ABS extrusion, the cost trend also served as a clear guideline for determining premiums. The situation was different for EPS and ABS injection moulding grades, where weak demand frequently led to more moderate price hikes or even a rollover. Demand for PS, EPS, or ABS is still not getting off the ground. There were occasional seasonal stimuli, but demand for all materials remained below the usual level. This was also because many processors limited their purchases to absolutely necessary volumes, as they did not expect the currently high price level to be sustainable – after all, the styrene-driven boom of the past three months made styrenics more expensive than they have been since autumn 2022 (ABS and EPS) or even August 2022 (PS). In fact, the processors were right – the styrene contract for May fell by EUR 111/t. As a consequence, styrenics prices are also expected to fall to an extent yet unknown, but it will be significant. It remains to be seen whether this will be considered a buying opportunity by processors. Should further discounts emerge for June, they are expected to keep the brakes on their order activity.

PET: After the turbulence of the previous two months, the European PET market shook itself to rights again somewhat in April 2024. With stagnating feedstock costs, European manufacturers were producing at a respectable level. Imports arrived, though they were significantly less attractive in terms of price due to the increasing cost of logistics on the long route from Asia. With demand still running at a relatively low level, European producers offered moderate reductions as an incentive. And this proved to be a successful approach, since converters opted for the quality-assured materials again on account of their competitive prices. Some realised that, with the Olympic Games in Paris and the European Football Championship in Germany, major events were coming up with potential to boost drinks consumption after all. The motto of market players for the month of May seems to be that things can remain just as they are. European volumes are sufficient to meet demand, the feedstock situation seems calm, and the major summer events and concert season are approaching. For the first time in a long while, optimism is beginning to spread again, even if at an understandably hesitant pace. Rollovers or no more than slight fluctuations are the most likely scenario.

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 2024: Weak demand, small price hikes create balanced market / Demand can mostly be met despite production cutbacks / Surprising optimism for May

The still weak demand put a limit on producers’ calls for price increases. The overall market was too liquid, and the benzene contract for April (up EUR 37/t) was often not seen by converters as sufficient argument to accept even higher prices. One exception was PA 6, which experienced a significant rise at the start of the new quarter.

Despite cutbacks in European output, producers were able to fulfil their contracts at all times, not least thanks to imports. Car production, especially in the premium segment, seems to have recovered somewhat and manufacturers ordered more material. Stock-building activities by converters, however, were seldom seen.

As for May, producers cannot be happy with the price increases they have so far achieved. For this reason, they are likely to again try for higher quotations. Converters, meanwhile, report an improved order book situation for May. Especially in the automotive industry and the E&E sector, the mood is brightening up. For this reason, some PIE panellists expect production in May to rise despite the many public holidays, which would mean that more material would be needed than in April.

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 2024: Production problems push prices up / Further upward trend likely to be limited due to weak demand

With producers’ demands well into the triple digits, manufacturers of rigid foams in particular had to bite the bullet and pay between EUR 150/t and EUR 250/t more, depending on the contract. This cannot be explained by the slight increase of EUR 37/t in the benzene contract for April; the main factor remains the shortage in supply – including the breakdown at BorsodChem.

Depending on the customer segment, demand fell short of expectations ‘moderately’ to ‘significantly’. The construction sector came out of hibernation, but very carefully. Slight signs of recovery were also reported in the automotive sector. In contrast, ordering activity from the comfort sector remained modest, with only the high-price segment showing any momentum.

In general, prices are expected to become significantly less dynamic in the coming weeks, and are also not likely to rise very sharply – both for isocyanates and polyols. The continued, sluggish demand is likely to place clear limits on producers’ demands. Supplies are ‘sufficient’ to ‘satisfactory’, although Covestro and Repsol are still struggling with production restrictions for polyols.

With warmer weather, the gardening sector should pick up soon. Automotive continues to recover, while the furniture and mattress segment is likely to remain well below its potential.

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 2024: Resins have likely peaked / Demand expected to pick up a bit in May / Hardly any change in glass fibres

Resin prices rose noticeably again in April. Demand picked up slightly, enabling producers to price in at least part of the increased feedstock costs.

Although the styrene contract for May plummeted by EUR 111/t, the market expects resin prices to remain virtually unchanged over the coming weeks. Sufficient material is available to meet the continued, low level of demand. Even for more specialised formulations, no supply problems are anticipated. European producers’ still-limited output is thus not set to undergo any major change. 

Hopes for a spring revival have been repeatedly postponed over the past few months. A little more momentum, albeit limited, is to be expected in May. This can already be regarded as a success, however, since the short production month would tend to suggest the opposite.

The price increase for glass fibre that European producers had hoped for failed to materialise. On the contrary, weak demand and the long market for a number of products resulted in a slight drop in the price of individual types again. Asian imports are still arriving in significant quantities and have thwarted any attempts by European producers to raise their prices. The situation is thus not likely to change significantly in the period up to the end of the quarter.

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 2024: Low demand keeps recyclers under pressure / Increasing imports of favourably priced virgin material cause grief

The recyclers’ most pressing problem is slack demand, as has been the case for some time. Even if volume calls have improved slightly, compared with the same period last year, hardly anyone on the PIE panel talked about a “normal” level. Exceptions to this are less cyclical customer sectors such as the beverage industry or refuse sacks.

It is still evident that recyclates are always gaining favour with processors when their prices are significantly lower than those of virgin material. But when they are not, recyclers customarily reduce their production to the bare minimum and avoid building up stocks.

As their production costs remain high (not least due to the still-elevated energy prices), the recyclers will try to restore their margins by raising prices. In view of increasing imports of inexpensive virgin material, however, this approach is likely to meet increasing resistance from processors.

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 2024: Mixed market leads to increasing momentum / Demand needs more impetus to reach normal again / Further price hikes on the table

A market of two halves – half the converters are working at an almost-normal level this month, but the other half are operating very slowly as demand remains weak. The previously anticipated stock-building measures were few and far between, and, as far as prices were concerned, the differences were considerable. Many recyclers sold off their high stocks from the previous weeks at very favourable prices – also to generate liquidity. The range of special offers on the market was as much as EUR 100-150/t below the average. This led to a broad spread, for example, with ABS, where there were reports of price changes ranging from down EUR 40/t to up EUR 50/t, depending on the producer.

Overall, despite the relatively good availability of base material, recycling lines in Europe are running with reduced output. The main reason for this is recyclers’ guiding principle that they should avoid building up their own stocks wherever possible and keep the market balanced.

Declining inventories at recycling companies and glimmers of hope of improved demand from converters are likely to result in further price increases in May. Many recyclers have already told their customers to expect triple-digit hikes. Should the intentions proposed in talks with the PIE panel actually materialise, the majority of demands could also become a reality. It remains to be seen, however, what the effect of the many upcoming public holidays will be.

Should car production continue to increase – as expected – a normal level of demand could soon be reached. Only for mechanical engineering do the question marks linger on because ordering activity everywhere is not coming to life.

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!