Price Reports February 2019

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

 

 Standard Thermoplastics February 2019: Fragile rollover dominates in a month of subdued demand / PS trends slightly upwards / Costs to rise across the board in March / Notations likely to increase

PE: As expected, Western European PE markets in February were very calm. The lack of any stimulus on the cost side complemented in this respect the very depressed demand. The only real orders came from agricultural sheet and film production. Producers therefore confined themselves to preparing for spring. They have already given initial warnings about possible customer allocations from mid-March. Several crackers are due for a maintenance turnaround from April, which is why some producers need to begin building up stocks. After a long struggle, the C2 reference was not fixed until the beginning of March – with a EUR 30/t increase. It is more or less inevitable that the increase will be generally factored into polymer prices, but it is questionable whether producers will be able to win any more than that.

PP: The ambitious plans of European PP producers to lift prices in February fell apart, despite the supply shortfall from two outages. As the month progressed, demand remain clearly below expectations and they found it hard even to achieve a rollover. For compounds, the rollover went through without any noticeable problems. The contracts indexed to C3 set the tone. On the whole, the market was weak in February, especially as the automotive industry failed to recover. The C3 reference contract for March was fixed EUR 25/t higher. Producers will be looking to tack on at least that much to their prices this month. As demand looks likely to improve, they will undoubtedly succeed, but whether they can pass on more is questionable. For compounds as well, passing on the rise in the C3 reference contract may be all that can be achieved.

PVC: Most contracts on the European PVC market were settled at the same level as for January 2019. Slight price reductions were seen in isolated cases. Export prices have already started to rise. Production in northern Spain is still subject to restrictions. Demand was comparatively robust for a February. In March, producers are likely to try for an increase in excess of the pro-rata C2 reference. Since caustic soda prices are falling, they will attempt to stabilise their margins through PVC sales. According to Euro Chlor, chlorine production in Europe is still on the decline. March has four full production weeks and a seasonal increase should also come about in demand.

Styrenics: After a bear market lasting several months, ABS and EPS prices bottomed out in February. PS even tended upwards again following the EUR 20/t increase of the SM reference. Processors again used the month for replenishing their inventories before the expected price hikes hit. For March, significant increases are already becoming apparent. The SM reference has risen significantly. The uptrend is likely to continue thereafter, considering the maintenance scheduled for styrene plants. Many processors have taken precautions and intend to make greater use of inventories in the coming months so as to mitigate the effects of the impending bull market.

PET: The market situation in February 2019 was once again rather confusing. Producers made every attempt to exploit the trend reversal on the cost side to push through increases. For high-volume purchases, which are frequently coupled to cost trends, they succeeded in most cases. A number of reductions were achieved for flexible small purchases during the first two weeks, while medium-volume orders were subject to both moderate increases and reductions, or were settled at a rollover, depending on the previous price level. All in all, a weak rollover resulted for the month as a whole. Increases are likely to follow in March. PX is pointing upward, demand has picked up for the spring and imports have similarly become more expensive. Hardly anyone will be able to avoid increases against this background. The very sluggish demand to date could receive a significant boost.

 

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 2019: Depression in car industry hits hard / Prices fall in many places / Only quarterly agreements continue to stabilise / Automotive expected to remain weak / Further price erosion likely in March

In February, the European market for engineering thermoplastics suffered considerably from the impact of the continuing depression in the automotive industry. Prices for key materials such as PC and PA 6 started to slide although producers did everything they could to stop the erosion. Even production cutbacks often did not help because sales were simply too slow. Higher categories such as PBT and POM were just about kept stable by the dominance of the quarterly agreements – but only just. Meanwhile, the commodity-related materials ABS and PP compounds barely budged.

While costs have risen slightly, players' faces in the automotive sector are becoming longer all the time. Until now, any hopes of a recovery have been shot down, and the prospects for March do not look much better. On the contrary, most players do not anticipate short-term improvement any more. This will certainly have an effect on demand and consequently on prices. ABS and PP compounds could pick up a little because of their proximity to the rising cost chains, but the classic engineering materials face increasing pressure. A return of the PIE Plastixx TT price index to its level at the beginning of 2017 no longer seems impossible.

 

 

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 2019: TDI loses more ground / MDI  downswing bottoming out / Demand on the continent weak, in UK dynamic

All MDI grades witnessed slight price declines in February, but some converters saw a rollover. For the pure grade, a tightening trend has been visible over the past several weeks, apart from automotive applications. Even with the toluene contract stable, TDI again gave up substantially more ground than expected. Depending on the previous price level, rebates were in the range of EUR 30-150/t.

Demand remained soft, with the exception of the UK. Here, due to preparations for the approaching Brexit, trading was more dynamic than on the continent.

Even if benzene prices are still low, MDI producers will try to avoid further concessions. Price movements over the next month will be mixed, ranging from a few still possible slight rebates or a rollover to a potential upward momentum early on. The extent of the changes will depend on the price previously paid. TDI pricing will remain highly volatile. The downward trend is thought likely to come to an end, though little sign of this has been seen up to now.

 

 

 

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 2019: Resins prices flat / March may see higher prices / Glass fibre unchanged / Demand points clearly upwards

Notations for medium reactive ortho resins remained unchanged in February. The slight increase in the reference contract for principal feedstock styrene was not enough to provide an impetus. Some buyers, especially large accounts, told PIE they even received further rebates from their suppliers. Prices for glass fibre reinforcements remained unchanged.

In February, demand almost returned to normal after a slump from November 2018 to January 2019. Orders from some converters and distributors still lagged in a year-on-year comparison, though not by much. The outlook for most customer industries appeared to be brightening.

Thanks to the EUR 60/t higher fixing of the styrene reference contract, resins prices will at least not go further downwards in March. Most market players with whom PIE spoke thought notations would at least roll over. Smaller players may already be seeing higher prices. For converters, the rising cost of flame retardants is more of a headache. Recent planned and unplanned outages at maleic acid anhydride suppliers are also helping to propel 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 February 2019: Prices of rLDPE and rPS soften in the wake of falling virgin material notations / Brisk demand continues due to tightening recyclate policies

On the Western European market, rLDPE and rPS prices reacted with a certain delay to the previous sharp declines on the primary market in February 2019. By contrast, rPP and rPET notations remained largely unchanged, while rHDPE showed a slight upward trend following a cost increase.

In the weeks to come, other recyclate types are also likely to see an uptrend, especially as many recyclers will eventually have to price in their increased transport and energy costs. They are likely to be supported by strong demand. In addition to the usual effects from the upturn in spring, demand will also be driven by the sustainability targets of major brands that are aiming to use more recycled plastics.

 

 

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 2019: Most prices roll over as expected / Little movement likely in March / Demand picking up / Reasonable supply of base material and situation easing with PA 6.6

Prices of most recyclate products on the Western European market remained unchanged in February. In most cases, they were protected by the gap to primary materials. The exceptions were a few ABS types – particularly those close to the primary product – and PA 6 materials, which retreated slightly. Base material was adequately available, and most production facilities were operating normally. The sluggish demand at the end of 2018 and beginning of 2019 has improved, although it is still not quite back to normal. Automotive production, which is under considerable cost pressure, is looking more intensively at cheaper substitute materials.

In the coming weeks, the situation is expected to remain calm. There is simply too little pressure from the primary sector at present. In the case of PA 6, cheaper primary compounds could lead to an alignment of prices in the secondary segment, whereas with PA 6.6, the reaction to announcements of price hikes is difficult to predict at the moment.

 

 

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!