Price Reports January 2024

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 January 2024: Most grades see no major price movement / Only PET quotes rise unexpectedly on fewer imports due to Red Sea conflict / In part substantial hikes expected in February

PE: Many January price agreements in Europe followed the C2 rollover. Even in the second half of the month there was seldom any increase in the volume of orders. Many producers closed their order books early hoping for increases in February. Most European production plants are still operating with reduced output. Because of the unrest in the Red Sea, imports were delayed while also becoming significantly more expensive. Reports of forces majeures added to the trouble. Even without the European C2 contract being fixed, calls for triple-digit hikes are already circulating on the market. This will provoke more intense negotiations because a revival in demand is still not on the horizon, and converters are likely to resist producers’ calls for increases. No serious supply bottlenecks are to be expected. For individual grades, delivery times could become a little longer. Converters will presumably operate cautiously for the time being, or stop ordering altogether and instead work from their stocks. Those who have primarily opted for favourably priced imports will now, in view of the chaos in the supply chains, likely try to obtain more of their material from European production. This might have a detrimental effect on availability for the overall market.

PP: Following the rollover for C3, the prices for polypropylene also only changed slightly in January 2024. Attempts by suppliers to impose surcharges generally failed due to weak demand. The low demand for reinforced compounds also led to slight discounts. The situation is, however, now changing – this is because several producers imposed order freezes in January in order to influence the market structure in their favour. The turbulence on the Red Sea plays into their hands, as imports likely will be delayed and become more expensive due to the longer transport routes. Several providers have renewed their attempt to increase prices in February, and have already announced markups in the three-digit range. Even if these demands cannot be enforced in full, the foreseeable price increases are certainly expected to exceed the price increase of C3 for February (a plus of EUR 15/t). 

PVC: The downward trend in PVC prices came to an end in January. Following the rollover for feedstock ethylene, negotiations for the base product frequently resulted in a sideways movement too. The sole exception was E-PVC pastes. A number of customers felt that there was still a need for adjustment after the annual talks, and prices had to be brought down again. The curtailed output of European plants was sufficient to meet demand. At the same time, imports from the US remained unattractive for many buyers. Since imports from East Asia were now also unable to reach Europe via their usual route due to the situation in the Red Sea, at least some local producers were able to welcome former customers who came knocking. Demand also remained subdued in January. While converters’ orders picked up again slightly at the start of the year, this was due to the usual seasonal build-up of stocks of finished and semi-finished products and not due to a real upswing in incoming orders. Looking ahead, a rollover is likely for the base material once again. Initial price increases for additives – frequently attributed to delayed and more expensive deliveries from Asia – may lead to a slight firming of compound prices in February.

Styrenics: On the surface, styrenics prices remained calm at the start of 2024: following the marginal decline in the styrene reference (down EUR 5/t), prices remained largely unchanged. PS saw a couple of small upward or downward adjustments, while EPS and ABS quotations ultimately rolled over or – due to weak demand – came with slight discounts. All in all, there were only minor changes at most. Despite this, things began to boil under the surface. Styrene spot prices climbed steeply over the course of the month, as the output of European plants was significantly reduced by maintenance and unforeseen production problems, and also because the feedstock benzene became more expensive. The result was a strong increase in the styrene reference for February (up EUR 190/t), which is bound to drive SM up into the triple-digit range. The turmoil in the Red Sea is also expected to have an impact, at least on ABS: longer shipping routes around the Cape of Good Hope are set to delay imports from Asia and also increase shipping costs – market players have reported premiums of up to EUR 250/t. European producers likely will be pleased by this, because higher import prices are strengthening their position against Asian competitors.

PET: The European PET market went through two distinct phases in January 2024. While slight reductions were still possible at the start of the month, the situation changed rapidly with the escalation of the conflict off the coast of Yemen near the Horn of Africa. As more ships were diverted, imports were delayed and became more expensive at all levels of the value chain. Basic prices in Asia also rose significantly as a result of China’s economic stimulus programme. Many converters were forced to switch to European material, which was still only available in reduced quantities. Bottlenecks then also emerged in the direct feedstock PTA, prompting hikes up to triple digits at the end of the month. Average price rises of EUR 60 to 80/t were recorded over the course of the month. February is likely to see further, at least moderate, increases regardless of what happens with paraxylene. Imports are set to remain relatively expensive. The increased logistics costs are, however, already largely priced in. How things develop in China will only become clear in the second half of the month after the Spring Festival, especially considering the anti-dumping investigations into Chinese PET imports that were recently launched by South Korea, Mexico, and Europe. In Europe, at least a slight upturn in production can be expected. At the same time, the outlook for demand remains uncertain during the pre-season period.

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 January 2024: First down, then up – divided picture at start of year / Fewer, more expensive imports / Some stock-building activities expected for February

The European engineering thermoplastics market in January presented a divided picture – in the first half, prices of many types declined significantly, because, although the benzene contract was up EUR 11/t, the market remained liquid. In the second half of the month, the picture was just the opposite, as prices turned around and, in the case of some speciality products, they even ended up higher than before.

Far fewer imports arrived in Europe than of late. The rise in logistics costs from Asia had a major influence here. European production continued to run with reduced output. Although overall demand was still weak, there was a little more life on the market due to a few stock-building activities and increasing concern about rising prices because of the supply chain chaos linked with the situation around the Red Sea.

The benzene contract for February was fixed EUR 214/t higher. This, together with the less competitive imports, is likely to stop the downward price slide, and with some types a considerable reversal is possible. Exceptions such as PBT and POM prove the rule. In many cases, sufficient stocks are available, so supply should remain long despite the cutbacks in European production and the reduction in the volume of imports. Because there does not seem to be any imminent prospect of substantial changes in demand from the customer industries, converters are likely to continue to proceed cautiously and fill up their stocks only when special offers become available.

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 January 2024: Weak demand again pressures isocyanate prices / Polyols slightly firmer

Producers tried to raise MDI prices in vain as continued weak demand in Europe drove prices even lower. There was a variation of transactions for TDI, ranging from rollovers to triple-digit discounts in an oversupplied market. Meanwhile, the price trends for polyols and isocyanates have decoupled for the first time in a long while. Suppliers were able to push through slight increases for some types that were less available, despite ongoing order weakness.

With regard to  further demand development, some optimistic PIE panellists said they see a faint light at the end of the tunnel. But where is the increasing demand supposed to come from? In the foreseeable future, requested volumes are likely to remain weak. Against this backdrop, further declines can be expected in February, at least for isocyanates. Polyol prices, on the other hand, could move laterally, supported by firmer quotations for imports. 

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 January 2024: Resin prices slightly down / Upward trend expected in February / Glass fibres mixed but with hikes

Western European resin prices either rolled over or fell slightly, depending on the volumes purchased. The recent styrene reduction still had an impact on a significant number of transactions. Maleic and phthalic acid anhydride remained largely stable. However, the rising tensions in the Red Sea from mid-January onwards suggest that resin quotations will soon move higher again. The styrene contract for February will also play a part in the uptrend. It was fixed EUR 190/t higher; a number of forecasts had even seen the reference skyrocket by EUR 300/t, mirroring the spot market trend.

Converters only really got going again in mid-January, and the second half of the month was affected by developments in the Red Sea. It is thus difficult to assess the situation for February. No major stock replenishment effects or transactions are in the cards – demand from end user markets is not strong enough for this.

As expected, the turn of the quarter and the year saw movement in the majority of glass fibre products. This is by no means a general upswing, however – at least not to the extent producers were recently calling for. The automotive industry remained well below expectations in a number of segments, putting pressure on prices.

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 January 2024: Recyclers keep prices stable in January, thanks to processors replenishing their stocks / PET price drop seems to have stopped

Despite another month of substantially weak demand, recyclers were able to keep prices mostly stable in January. The first stock replenishments by processors helped substantially. Supply was also kept balanced with demand because some recyclers did not start production until the second week of January. As processors began to replenish their stocks, there was movement on the market again – and demand stabilised, albeit still at a somewhat low level.

In February, recyclers are likely to try and get more money for their materials. As processors continue to replenish stocks, the chances of this happening are better than in the previous months. Contracts should always be fulfilled, despite curbed production.

For the first time in many months, the erosion of PET prices was halted. Players demanded and actually paid more for materials, despite the rollover for clear bottle scrap on the cost side. Significantly stronger volume calls from processors have raised hopes for the coming months. According to many PIE panellists, the demand slump is likely to be over soon. The EU’s minimum recycled content target for 2025 is already casting its shadow. Demand is forecast to continue to rise in February. Processors are therefore likely to accept slightly higher prices more quickly than in the past.

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 January 2024: Downward trend loses some momentum despite ongoing weak demand / Prices expected to increasingly stabilise

Rollovers and falling prices dominated the picture for engineering recyclates in the European market at the beginning of the new year. In more detail, rABS and rPOM declined further, while rPA 6, rPA 6.6, and rPC either fell or remained stable, depending on the type. Overall, however, the downward trend was considerably less dynamic than in the previous months despite weak demand continuing.

This is primarily due to an increasingly balanced market situation now that – as is the case for most materials – far fewer imports have arrived in Europe. This trend is likely to continue in February, such that quotations will see even greater stability, or at most experience a few marginal reductions

As with everything in life, there are one or two exceptions. This applies on the one hand to rABS, where compounders had expected demand to pick up to a greater extent, and on the other hand to rPOM, for which stocks from importers are still abundant. These materials are expected to continue trending lower.

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!