Price Reports August 2019

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!

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

 

Standard Thermoplastics August 2019: Weak demand continues to be dominating force / Polyolefins and PVC experience rollovers / SM drives PS upwards / PET continues on decline / Reductions likely in September

PE: As expected, European producers were unable in August to factor the small increase in the C2 reference into prices of most PE materials. The exceptions were the pipe grades, where a FM declaration limited supply, and buyers paid the reference hike in full. All other grades ended in a weak rollover. With many players assuming that prices had bottomed out, demand picked up slightly. The early calls by some producers for hikes of up to EUR 50/t in September seem to be illusory in view of the EUR 40/t fall in the C2 reference. The expected tightening of supply due to the autumn maintenance season could mean that the cost reduction might not be passed on in full. Price cuts will be more or less unavoidable even if business picks up a little. There are no impulses in sight from the end markets.

 

PP: Trading started on a sour note for European PP producers in August, with demand in a deep summer trough. It took until mid-month for demand to liven up somewhat, when spot notations simultaneously firmed. At this point, producers were happy to see polymer prices roll over at the propylene reference level. The compounding market segment was quiet. As the two reference points showed no change, July prices here, too, rolled over without much ado. The propylene reference contract for September dipped by EUR 50/t. At the moment, it doesn’t look as if demand will be strong enough to allow producers to pocket any of their price relief. As compound prices are tied to indices, they will without doubt come down.

 

PVC: European PVC producers seemed unconvinced that they would be able to push through demands for the pro-rata increase in costs in August and agreed to a rollover. One producer was not prepared to waive a EUR 5/t increase. Slight increases and reductions were seen here and there, depending on the price for the previous month. Notations on the UK market rose due to currency translation effects. Additives remained neutral overall. Only plasticiser prices were still under pressure. Order activity in September is eagerly anticipated. The hope is that a seasonal upturn will come about in the same way as last year and that the PVC market will be largely spared the economic slowdown. At all events, reductions ought to be feasible given the weaker cost side.

 

Styrenics: In Western Europe, styrenics prices are continuing on a roller coaster ride. After two months of declines, notations trended up in August 2019, following the SM contract, although plastics producers were often unable to transfer the full SM cost increase to the market. Demand was weak due to the economic downturn and summer holidays. Prices will continue to go up in September as the SM contract has risen EUR 59/t. Producers could insist on transferring the costs in full, especially since processors’ demand is likely to pick up when the holiday season ends. The economic environment continues to have a dampening effect. Should it become apparent in September that notations will drop, many processors will not buy more materials than necessary.

 

PET: The pressure on European PET prices continued in August. After a hot start, the weather remained mixed for too long for demand to pick up more. Many processors were left sitting on fully stocked warehouses. Transactions were concluded at highly differing prices, however. The greater the volume purchased, the more prepared suppliers were to make concessions. Small volumes were more often settled at a rollover. Freely negotiated monthly purchases fluctuated between price reductions of around EUR 30/t and stability. The PX reference for August was settled at a late stage at EUR 40/t lower. Demand ought to pick up, especially as the Mediterranean holiday period is coming to an end. Whether this will stabilise the situation is anyone’s guess, given the global trade disruptions that keep flaring up, although inexpensive imports are on offer.

 

 

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 August 2019: Rollover domination a surprise / Market dead as a doornail / Transactions almost non-existent / Business expected to pick up in September / Heavy price pressure prevails

Somewhat surprisingly, European engineering thermoplastic prices in August were in the majority of cases carried over from July. This was due less to a balanced market situation than to a kind of deadly quiet on the markets. Especially in the automotive sector, there was virtually no life at all. Producers would not have been able to tempt buyers out of their slumber even with price cuts. With the lack of business, prices froze at the levels of the quarterly agreements. The few segments in which there was any movement at all – above all PBT, POM and partly PMMA – followed the general rollover trend.

 

It could well be that the period of calm will come to an end in September because, despite the depressed mood, there will be some topping-up measures after the long holiday break. Many players have said goodbye to any thoughts of an improvement before 2019 ends. Generally, a continuation of the gloomy economy is expected.

 

The high stock levels are a worry for suppliers. Should demand continue so slow, some will certainly think about stimulating business with price cuts. At the same time, producers are becoming caught in a quandary because the costs of the aromatic base materials have been rising for several months. For this reason, many of them will resist making significant price cuts. On the other hand, there is no doubt that the heavy pressure on prices will continue. Negotiations for Q4 are beginning, and customers will definitely be unwilling to take a back seat.

 

 

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 August 2019: Rollover for all products but TDI / Producers try to restore margins / Slack demand and tight supply could hold hikes at bay / Trade wars and Brexit cloud outlook

With the exception of TDI, Western European notations for isocyanates and polyols rolled over in August. A few producers launched trial balloons but, due to the absence of demand, these disappeared into thin air or were postponed for a few weeks. Producers’ attempts to restore margins are the most likely explanation for the fresh rise in TDI prices. Converters topped up inventories, even though they didn't immediately need additional material, and this held offtake stable. The weaker financial results presented by polymer producers led to fears that they would seek to raise prices.

 

Notations for starting materials benzene and toluene have been trending slightly firmer. Going forward, slack demand for isocyanates and the tight supply will balance each other out and serve to keep price momentum in check. With trade wars and Brexit looming large in the background, however, the outlook is uncertain.

 

September could see at least minor hikes announced for TDI if producers keep to their current strategy. However, converters’ relatively full inventories, in particular from the automotive and bedding sectors, as well as increasing imports from Asia could be sufficient to hold any excessive price increase plans at bay and keep the market stable.

 

 

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 August 2019: Resins lose ground despite SM rise / Steep slide for feedstocks / Upswing possible next month / Glass fibre unchanged

Even though the styrene reference price trended higher again in August, notations for medium reactive ortho resins once again gave way slightly. The soft demand, in tandem with the renewed sinking of prices for phthalic anhydride (down EUR 45/t) and maleic anhydride (down EUR 75/t) clearly created sufficient downward pressure.

 

A few customer markets, notably E&E and construction, were largely stable. Generally, the automotive market showed insufficient signs of reviving, and demand was well below average.

 

Depending on the development of demand outside the automotive sector, resins prices could gain some momentum. From the feedstock side, the impetus is likely to be only moderate, as price downturns for maleic anhydride and phthalic anhydride show. This relativises the cumulative EUR 92/t increase in the styrene reference contracts of August and September. With demand still very weak, producers will be uneasy about announcing hikes.

 

Glass fibre products felt downward pressure solely in niche applications, and rebates were so rare as not to affect the PIE range. Among topics to be discussed at the upcoming trade fair “Composites Europe” in Stuttgart / Germany will undoubtedly be the EU’s investigation of alleged anti-dumping practices by Chinese importers and the US-China trade dispute, which has not yet reached the reinforced materials 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!

 

 

 

 

 

 Standard Recyclate August 2019: Price reductions for individual grades / Pressure from primary markets / Holiday season dampens demand / Wider range of discounts for rPET / Few changes expected in September

Most standard recyclate prices in Western Europe remained stable in August 2019. Only a few recyclers reacted to the price pressure from the virgin material markets and granted slight discounts. As usual, demand was very subdued during peak holiday season. This resulted in a build-up of inventories. Only the rPET grades recorded discounts across the board, thus continuing the downward trend of the past months.

 

What’s more, the price erosion with rPET is likely to continue in September too. Hardly any changes are expected for the other recyclate types though, mostly because demand should pick up again once the holiday season ends.

 

 

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 August 2019: Only a few minor price reductions / Rollover predicted across the board in September

Western European notations of most recycled engineering plastics remained unchanged in August. Exceptions included ABS and PP compounds, where buyers were able to win modest reductions. The higher-specified grades were also down, in some cases by a little more due to more favourably priced imports on the market from Asia. Pressure from the primary segment was the highest with the natural grades of polyamide 6 and 6.6, which is why recyclers there were forced to give a little ground.

 

Overall, regrinders’ stock levels increased primarily because order activity was not exactly overwhelming. In August, however, this was not due exclusively to the weakness of the automotive industry, but also to the peak of the holiday season, which certainly contributed to the reduced demand.

 

September is expected to see a rollover across the board. At present, recyclate suppliers are accepting a certain build-up of stocks because the order situation for September is already looking good. Inventories will, however, increasingly dwindle as the month progresses. At any rate, recyclers seem to be relatively satisfied with the situation, and some are even quite positive.

 

 

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!