Price Reports February 2025

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 February 2025: Prices rise unevenly / Sufficient material available / No signs yet of spring revival in demand

PE: Western European LDPE film producers were not satisfied with simply factoring in the increased monomer costs for ethylene (up EUR 52.5/t). Their demands for more extensive hikes were successful, with increases ranging from EUR 60/t to EUR 100/t. The production cutbacks that kept supply on the tight side played into their hands. Although existing contracts were in most cases fully met, many producers refused during the course of the month to accept further spot orders. Apart from the crisis-resilient packaging industry and the medical technology sector, the sanitation industry stood out in particular in February because of the astonishingly high demand. The majority of converters nevertheless reported few incoming orders from their customer industries. The March increase of EUR 2.5/t for ethylene is likely to play no more than a secondary role in the next round of negotiations. Although producers have already announced plans to improve margins again by imposing double-digit increases, it remains to be seen whether they will be able to push these demands through with converters who have very few orders to work on. Nor is the future looking very good for HDPE. For many processors, spring is expected to begin with fewer orders than they would like. There are at present no signs of any stimulus that might lead to an improvement in the near future.

PP: Producers were unsuccessful with their demands, some of which were in the three-digit range. Across all types, most contracts were based solely on the EUR 52.5/t rise for propylene. As demand remained weak, the range of prices widened and reached a spread between increases of EUR 20/t and EUR 60/t. The supply situation in Europe was sparse. Imports became a scarce commodity. The cutbacks in production would have been much more noticeable if demand had improved. However, after a surprisingly good start to the new year, incoming orders cooled down again in many places. Consumer reluctance to spend meant that many processors did not continue to build up inventories, but rather only bought the bare essentials. The increase in the price of the propylene contract (up EUR 7.5 /t) is likely to play a subordinate role in the negotiations in March. Although both planned and unplanned plant shutdowns are keeping supply tight, the reluctance to buy will make it difficult to implement price increases. Due to production problems, several producers may have difficulties meeting all delivery obligations. Expectations for the first month of spring are also subdued.

PVC: In February, European PVC prices were firmer. At the beginning of the month, producers called for substantial hikes approaching the EUR 70/t mark. Against the backdrop of the EUR 52.50/t rise in the ethylene contract and significantly higher energy costs, the increases moved at a level above the proportionate costs of the rise for ethylene. In the Eastern European region, hikes of EUR 40/t were even often obtained. The market was adequately provided with material, even though one plant had to be unexpectedly switched off in mid-month because of a fire. Seasonal factors ensured a slight stimulus in demand, but were unable to balance out the continuing weakness of the construction industry. In March, the ethylene contract rose EUR 2.5/t. Substantial price increases for PVC are therefore unlikely. This is, for now, unlikely to be altered by the start of the maintenance season in Europe, which entails a well-balanced supply situation on the market. However, because their margins are still under considerable pressure, producers will likely again become creative/inventive – in a letter sent shortly before the end of the month, one producer informed its customers that it wants to factor in its higher energy costs via an additional increase. The extent of the planned hike: EUR 60/t.

Styrenics: While the price increases for polystyrene and ABS were mainly based on the increased costs (SM and butadiene up EUR 45/t each, the ABS component ACN up EUR 56/t) in February 2025, the premiums for EPS were significantly higher and even reached triple digits in some cases. This is because non-backwards-integrated producers insisted on factoring in the sharply increased purchasing costs on SM spot markets. Seeing this movement, several other suppliers saw an opportunity to pad their thinned-out margins. For PS and ABS, producers had also demanded substantial premiums at first. Continued weak demand, however, left no scope to push them through – at best, price increases meant rounding up to the nearest ten. Market activity could be similar in March. PS and EPS will take their cue from the renewed rise in the SM contract (+65 EUR/t), although producers who are not backwards integrated are likely to argue for higher premiums for EPS again due to higher purchasing costs. Meanwhile, the upward trend in ABS will be slowed somewhat by the development of the other cost components butadiene (+20 EUR/t) and ACN (-8 EUR/t).

PET: In February, demand on the European PET market was again weak. The uncertainty regarding future developments continued to persuade buyers to hold back in their preparations for the coming season. There was also little change on the PET production side, which had already adjusted to the situation. Imports were available to a moderate extent. The PX contract reference price rose by EUR 65/t in January, which, in the case of larger purchasing volumes, generated moderate increases at the lower end of the PIE bandwidth. Otherwise, most of the January prices rolled over. Although demand is likely to increase somewhat as the season begins, a big flourish is not to be expected. The supply situation seems to be adequate to satisfy a slight recovery in demand. For the end of March, more imports are also expected. Feedstocks have so far shown more of a declining tendency, so that there is likely to be at most minor increases, if at all.

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 February 2025: Announced price increases fail to go through in full / Production still with reduced output, demand remains slow / Price increases expected in March

Producers were able to push through their announced price increases only to a limited extent. The quarterly contracts kept prices largely stable, although one exception was polyamide, where the downward price trend that had lasted several months came to a halt, with the result that prices even rose slightly. Producers, meanwhile, were calling for much higher increases, but were only able to win very small rises.

Across all grades, producers continued to cut back on their output. The lower rates that have now become customary for many months have evidently become the new normal. Converters’ sales last month were somewhat above the low expectations. For some panel participants, the pre-orders from customers in the US were mainly responsible for this, because they wanted to have material in stock before the expected tariff increases.

In March, producers will try to win price increases, and with the monthly contracts they could be successful. The quarterly contracts, however, provide the overall market with a certain stability. The preparations for the building season should revive demand to a certain extent. Some converters anticipate significantly more cheap offers from Asia as from April, which is why they intend at present to buy only what they absolutely need.

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 February 2025: Price increases pick up speed for isocyanates and polyols alike / Demand falls short of expectations / Further increases certain

After several months of price declines, both isocyanates turned upward again for the first time. Although sufficient material was available and demand remained weak, contract hikes were in the mid-double-digit range.

Some converters were able to enjoy a slight rise in order volumes. Overall, however, there was no sign of a spring awakening and for many, demand fell short of expectations.

Producers have already announced further price increases for March – in some cases even in the three-digit range. This seems too high for many converters. Still, almost everyone is working under the assumption that there will be noticeable hikes, but also that they will only be able to pass on such surcharges to their own customers to a limited extent.

Converters’ order books are also only slightly filled for March. Hardly anyone expects the situation to improve in the first quarter due to macroeconomic factors.

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 February 2025: Upward trend for ortho resins / Chopped strand mats set for further rollover

The continuing upward trend for styrene was passed on to the medium reactive ortho resins this month without the usual delay. Since a number of European precursor plants were not running at full capacity, production was also slightly reduced. There was never any risk of contracts not being fulfilled, however. Demand remained very weak.

The upward trends are continuing into March. The styrene contract for Europe went up by EUR 65/t. Producers will want to pass on as much of this hike as possible to converters. The weak order situation is likely to continue for a while. Many converters thus only want to buy what they actually need.

In the case of chopped strand mats, the high-end grades in particular were fixed at a rollover, while low-end grades fell slightly. The impact on overall pricing was negligible, however. With demand remaining at a low level, supply was adequate at all times. An element of uncertainty as to how prices would develop was clearly evident in the monthly discussions with panellists. Most converters expect a renewed rollover due to the persistently weak demand.

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 February 2025: Rollover, slight premiums characterise pricing landscape / Seasonal effects expected to increase demand

A gloomy mood with the first glimmers of hope – thanks to a tailwind from a slight upturn in demand, recyclers were able to increase their prices. For some recyclate grades, the premiums reached up to EUR 50/t. The output of recycling lines was still throttled in many places. However, some recyclers began to increase their plant utilisation. What proved to be surprisingly strong was the order activity. Especially for low-density types, the scarcer supply of virgin material on the market prompted some processors to turn to recyclates again. For other materials, the increase in order activity came from inventory replenishments.

The substitution trend for LDPE is likely to continue due to the tighter supply of primary material. This once again offers recyclers an opportunity to adjust prices upwards. Production is likely to increase across all grades, but not yet reach normal levels. Seasonal effects are now the main demand drivers. PIE panellists believe that demand from the processors will continue to increase across the board.

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 February 2025: Market sees very little activity / Demand remains weak / Spring recovery not expected before second quarter

It seems it’s the same old story every month – although there is (again) more engineering recyclate material available on the market, there is only very little activity. Demand is still very poor across all the grades covered in this report. Both recyclers and converters can only dream of a spring recovery. Because base material is also plentiful, many compounders have no alternative but to build up stocks.

For March, too, there is no sign of any improvement in the overall situation. Occasionally, there may be one or two price increases, but converters’ order books still have plenty of space for incoming purchases. PIE panellists are predominantly of the opinion that the spring recovery has been postponed until the second 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!