Price Reports August 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!

 Standard Thermoplastics August 2018: PE and PVC only weakly rollover / Small dynamics with PP / Styrene pushes its polymers upwards / PET unexpectedly stable due to PX costs / Signs of buoyancy for September

PE: In August, the European PE market presented a sluggish picture. While the food sector including beverages continued to flourish, many other sectors experienced a pronounced summer lull. Although producers had also switched to summer mode, prices came under pressure despite the stable C2 reference. There were a few minor reductions, although most prices showed a weak rollover. In September, demand is expected to pick up. Production is characterised by maintenance turnarounds and general restraint. With costs stable again, producers will try to restore margins. In many areas, it could be enough to see at least a consolidation of prices.

PP: The European PP market saw little movement. While the C3 reference contract rose slightly, producers’ plans to lift prices fizzled as buyers remained in a holiday mood. Lower output met with lower demand as the summer lull made a comeback. The result was that PP notations remained flat at the July level. In September, moderate increases may be on the horizon. The C3 reference contract was fixed EUR 10/t higher against July, bringing the two-month rise to nearly EUR 20/t. If demand in September follows in its typical pattern, demand should liven up soon. As producers’ inventories are not exactly full, and cracker maintenance turnarounds are gearing up, C3 could trend tighter.

PVC: For another month running, Europe's PVC producers had to accept margin losses on a large number of contracts. Demand was weak, particularly in southern European countries. At the same time, material was available in abundance. As in July, producers were demanding a rollover at the start of August. However, the tendency toward oversupply in the market ultimately led to price reductions, especially in the upper price segment. With the C2 market having set the example of a rollover and the expected seasonal pickup in demand, producers will doubtless be hoping that they can make good their margins again.

Styrenics: In Europe, styrenics prices reacted in different ways to the slight increase in the SM reference. With PS, suppliers generally transferred the full cost increase, while with EPS, they usually had to contend with lower hikes. Due to more competition from Asia, ABS prices mostly remained at July’s level, only natural ABS saw slight rises. Delivery often caused headaches. There were some delays since not enough truck drivers were available during the holidays. The holiday season governed demand for styrenics too, even though it turned out quite well for PS and ABS in August. Demand for EPS varied greatly from region to region, in some cases with major fluctuations in day-to-day business. Demand should pick up in September. However, more price hikes are expected after the increase of the SM reference.

PET: At the start of August 2018, everything was clearly pointing to the pressure being taken off European PET prices after improvements emerged in the undersupply situation. In the end, only a few buyers obtained moderate reductions during a short period around the end of July. By a third of the way through the month, suppliers were refusing to give up ground. The EUR 60/t increase in the PX reference as well as the bad news of exploding PX prices in China caused the first import offers to disappear. Hence, producers maintained their July prices on into August. Supplies have returned to normal, and demand should return to the customary level after the hot European summer. For PX, triple-digit hikes are feared to be on the cards. This will have an impact on suppliers' demands for PET, since it could mean a rise of almost EUR 200/t in the cost mix since July. Despite the already high level, increases are expected.

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 August 2018: PA 6.6 situation continues to be very tense / Notations nevertheless largely stable in the holiday month / Stimulus for further price rise will remain effective into autumn

The sluggish demand usual during a traditional summer kept European prices for engineering thermoplastics stable on a broad front in August. Nevertheless, the strong upward stimulus – above all with PA 6.6 – remained consistently intense, but since there was very little material available, prices stagnated at the prior month’s record level. With commodity-related ABS and PP compounds, the situation remained calm too.

In September, there are further increases expected in certain segments, although in many areas, the quarterly notations will slow down any price movements. Additionally, the restart of automotive activities is not exactly bubbling over at the moment.

Irrespective of this, calls for large increases for PA 6.6 are again on the table in a new round of price negotiations. With PBT, there have also been a rising number of announcements of hikes in the final month of Q3 after polyester products in Asia were shaken by the exploding PX price in recent weeks. The higher styrene reference will drive up ABS again, and presumably the PC/ABS blends too. PP compounds will probably rise only moderately. With PC, on the other hand, there are signs that prices will move in the opposite direction. The start-up of a new plant in China with a capacity of around 100,000 t/y is likely to improve global availability. However, whether this will have an effect on the European market before the end of September is questionable. For Q4, the prospects for PC customers are of cautious optimism.

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 August 2018: TDI trips over persistently higher MDI / Polyols mostly unchanged / TDI and pure MDI stall

The market continued quiet in August. Weak demand led to a sharp fall in notations for polymeric MDI and TDI. The former gave way by EUR 70/t on average, the latter by EUR 115/t. Large buyers of TDI reportedly crashed the EUR 3,000/t barrier.

By contrast, MDI prices gained momentum, though not as much as in the recent past. The noticeably weaker demand during the summer holidays helped restore some equilibrium to the market. Obviously, many converters used the summer holiday period to stock up for autumn. Notations for both polyol grades remained largely unchanged.

In September, when order activity returns to normal, slight pressure on polymeric MDI can be expected to build up, though rising demand could put an end to that. Possible scenarios are a rollover or a slight decline. At the outset, the hefty rebates seen in August could provide some temporary relief.

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 August 2018: Ortho resins dip slightly / Glass fibre reinforcement unchanged / Strengthening demand will push resins higher in September

Generally slack demand put downward pressure on ortho resins in August, despite the recent upward momentum for key feedstock styrene monomer. On average, the decline was about EUR 20/t. Prices for glass fibre reinforcement remained unchanged.

Notations for phthalic acid anhydride (PA) und maleic acid anhydride (MA, Q3 contract) also remained largely stable, despite the now completed maintenance turnaround at the PA plants of Atmosa and Polynt.

For September, the signs point to an at least slight upward trend as the styrene reference contract was fixed EUR 65/t higher and order activity is likely to pick up. Demand will be higher, but somewhat below expectations. Buyers of glass fibre grades will take a wait-and-see attitude to see which way prices will go. European producers tend to think price levels are too low, but do not have much scope for increases.

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 August 2018: Almost all prices stagnate at previous month's level / Holiday period paralyses demand

It was as if the heat of the recent weeks had also affected the market for standard thermoplastics – almost all prices were extremely reluctant to move until mid-August. The holiday season seriously dampened demand, and many recyclers even shut down their plants temporarily or reduced production. The only exception seemed to be rPET, where the beverage sector continued to generate a brisk demand.

However, the coming weeks should see a little more movement. For one, the holiday period is coming to an end, and for another, market watchers are expecting upward stimuli at least for rHDPE, rPP and rPS due to an already tight or dwindling availability on the virgin material markets.

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 August 2018: General uptrend loses momentum / Holiday season puts damper on demand

The general upward trend with engineering recyclate continued in August, but with less momentum. Recycled PC and PA 6 saw small increases, while rPA 6.6. and rPOM remained at last month's levels. Following on from the highs of the previous months, however, this is likely to be nothing more than a short breather, as further hikes are already on the cards for the coming weeks.

Demand in August has been very subdued, as usual with the holidays, and many recyclate producers have switched off their machines completely or cut back on output. This is likely to change soon when the holiday period comes to an end, so that both supply and demand should return to normal.

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!