Price Reports February 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!

Articles: February 2018
Standards Thermoplastics Engineering thermoplastics Polyurethane Feedstocks	Composites/GRP Standard Recyclate Engineering Recyclate

 

 Standard Thermoplastics February 2018: Costs passed on for PE and PVC / PP producers up their margins / Styrenics in tandem with sharp rise in monomers / Polyolefins under price pressure in March

PE: With the exception of the niche product EVA, the rise in the ethylene reference price was in most cases factored in on the European PE market in February. Above all, buyers at the lower end of the price scale had to pay the cost increase in full, but resistance was more marked at the upper end of the scale. Due to healthy stock levels and in view of the high prices, however, customers called up only as much material as was necessary. As before, the supply situation on the LDPE market was better than with LLDPE and HDPE. The latter suffered from a lack of imports. Most producers are – at present anyway – not showing any signs of passing on to their customers the cost decrease from the lower ethylene reference in March. Converters' desire for price reductions should be put in perspective particularly with the materials that are subject to seasonal demand. The hope for lower prices will also be dampened by the upcoming maintenance turnarounds at numerous European cracker facilities, which are likely to limit polyolefins production. A slight downward tendency is nevertheless probable.

PP: As was to be expected, PP price increases – especially at the lower end of the scale – significantly exceeded the rise in the propylene contract in February. Producers seeking hikes received support from outages at important plants.​  Price support for PP compounds was fuelled by the inadequate supply situation for polyamide. Producers were at minimum able to pass on their higher production cost.  Even if polymer suppliers could not fully recoup their higher costs for propylene over the past several months, there is little scope for additional hikes at the moment, especially since the reference contract for March went down by EUR 23/t. Despite the tight supply situation, producers are unsure how much higher notations can go without meeting resistance. As a result, a sideways movement is the most likely scenario for March.

PVC: The price hikes announced by European PVC producers in February were very high – too high, as it turned out. Base polymer suppliers were able to pass on not only the pro-rata ethylene costs but also, in view of the tighter tending market situation, occasionally won minor margin improvements. As far as compounds are concerned, the rigid PVC grades rose once again at an above-average rate. The matter of titanium dioxide continues to be a problem. Flexible compounds suppliers basically passed on the matrix costs. PVC paste grades benefited from the very lively demand.​  In March, the upward tendency will continue. Irrespective of the cost development, producers will try to factor in a margin improvement. They could succeed in many cases, but to a fairly moderate extent.

Styrenics: After the significant EUR 130/t hike of the SM reference contract, styrenics notations increased sharply in February. There were three-digit premiums on PS and EPS. ABS prices, by contrast, were limited by relatively lower cost increases for butadiene and ACN. The premiums on PS and ABS were almost paralleling the cost hikes, while EPS prices generally increased to a lesser extent to account for an already high pricing level and seasonally reduced demand. The price level stifled processors’ willingness to purchase. Often, they only bought essential volumes to limit inventory levels in the hopes of a future price downtrend. EPS processors, however, were likely to buy more. Many of them still remember last year’s bottlenecks too well to risk low stock levels.​  As the SM reference contract went up again in March, by EUR 55/t, market players are expecting further price increases. All styrenics notations will merely use the current high pricing level to soar even further. With respect to EPS insulation materials, March could even set new record prices.

PET: In February 2018, what was more of a latent tightening trend on the market led to slight increases for PET in Europe again. It was primarily smaller quantities that were affected. The rises are, however, also coupled to the increases in the US. Prices there rose more sharply, since the insolvency of M&G Polymers meant lesser quantities were available on the market. The higher prices also attracted more export volumes from other regions, which were then lacking for an across-the-board supply in Europe. In Asia, prices also experienced a moderate rise again as a result.​ The upcoming spring season made itself felt in February already with a relatively brisk level of demand. This is set to rise further in March. Taking in the global upswing in the polyester and petrochemical chains, this is creating a situation where clearly higher increases are possible. Buyers are also becoming more nervous, which could trigger a run.

 

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 February 2018: Drive with PC and polyamides continues uninterrupted / Dramatic bottlenecks with PA 6.6 / PBT, POM and PMMA stable at high level / More upward pressure on the market

In February, as predicted, producers on the European market for engineering plastics pushed through further instalments of the substantial price hikes they had announced at the beginning of the quarter. Especially with PC and polyamides, the supply situation remains critical. In the case of PA 6.6, the market situation is so bad that it defies description. The ADN outage in France virtually paralysed the entire supply chain. Buyers are in a desperate search for material. On the other hand, prices for PBT, POM and PMMA, which were comparatively readily available, showed little movement, but were in some cases at a very high level. The commodity-related ABS (see PIEWeb of 05.03.2018) and PP compounds (see PIEWeb of 05.03.2018) basically followed in the footsteps of the respective feedstocks.​ Unfortunately, there is little prospect in March of any respite on the extremely difficult PA markets. Further price hikes are almost inevitable, and the same applies to PC. The other materials could perhaps continue to tread water in the first month of spring. ABS and PP compounds will presumably follow the feedstocks again. Looking further ahead at the market as a whole, more substantial increases are to be feared across the board in the second quarter.

 

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 Feedstocks February 2018: Uneven movement for MDI / Polymeric grade softer, pure firmer / TDI und polyols also somewhat firmer

The once again soft benzene notation and the somewhat improved supply situation for MDI in Europe put further downward pressure on the polymeric grade in February. Tighter supply drove prices for pure MDI upward. This led to a growing gap between the polymeric and pure grades after many months at or near parity. With supply limited, TDI prices moved slightly higher.  In the coming weeks, the downward momentum for polymeric MDI is likely to be sustained, while the PU feedstock may continue pointing upward in the US. At press time, the outages in the US and China were seen to be still in place. Producers appear to be concentrating on the polymeric grade more than usual. This is the only plausible explanation for the tightness-related hikes for pure MDI. The slightly firmer notations are likely to continue into March. TDI is also likely to see minor upward momentum.  Both flexible and rigid polyols followed the price rises for ethylene and propylene in February. An at least brief respite can be expected in March.

 

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 February 2018: Resins gain more momentum / SM drives upswing / Further increases possible in March / Glass fibre mostly stable

Ortho resins gained additional price momentum in February. Producers were unhappy with the low price levels of some products, and this is where most of the upward momentum was spotted. Driving the hikes was the steep rise of EUR 130/t in the monthly styrene contract. Notations for some grades reacted to the higher glycol price. There was only a weak impetus from maleic and phthalic acid anhydride.​  After rising at the beginning of the year, notations for glass fibre products were mostly flat in February. With assembled roving, some gains were made.  In March, the glass fibre side should remain stable for the most part. At the beginning of the new quarter in April, this could change, however. In any case, ortho resins should rise in tandem with the EUR 55/t increase in the styrene price.

 

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 February 2018: Prices turning upwards across the board / China boosts rLDPE demand / Updraught in rPET / Uptrend likely continuing into March

The uptrend in recyclate prices has strengthened. Even prices for rLDPE have risen for the first time in months. Chinese volume calls were the major price driver for this material. Other materials either followed increasing virgin material prices or benefited from seasonal effects.  Recyclates such as rPP, on which suppliers could not yet slap any premium, are likely to see increases in March. The current market situation and the onset of seasonal effects are also providing stimuli to most other recyclates. Recycled PET prices will continue to go up despite having already risen for months.

 

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 February 2018: Prices for all types on the up / Extremely tight supply situation with base material / No relief on the horizon / Significantly longer delivery times

The marked increase of prices on the primary market also pushed up those of all recyclate types covered by this report in February. Apart from that, significant delivery delays with primary products added to the demand for regrind material, extending delivery times to five to ten weeks.  Overall, the order situation remains healthy – which is also contributing to the shortage of base material. Consequently, a further general price rise is expected, especially as the primary market is also tending firmer on a broad front.  In the case of ABS recyclate, the price hikes were a direct consequence of the increases in the cost of primary product. Natural-coloured base material is almost impossible to find, but the situation with the more opaque grades is not quite as bad. The supply bottleneck is pointing to a high-priced first quarter.  Unlike with rABS, where the styrene feedstock is the cause of the rise, cost stability prevails with rPA 6. Upward movement here is being driven by the limited compounding capacities. The same applies to sister product rPA 6.6, where plant outages are the reason for the desolate state of the primary market. With the vast majority of customers on allocation, it is almost impossible here to speak of a "proper market". Base material is correspondingly rare and expensive.  Due to the restricted propylene supply, there have also been initial reports of allocations and delivery time delays for PP. This has also had a major effect on rPP compounds.

 

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!