Price Reports January 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 January 2025: Quotations show mixed trends / Demand remains weak and supply sufficient across all grades / Premiums expected for February

PE: In January, PE prices presented a mixed picture. With most grades, the rollover for ethylene was factored in. Increases were seen predominantly for low-density PE grades because of ongoing production problems for the material. High-density grades and EVA experienced the biggest pressure on prices due to the decent supply situation. Overall, however, the upward and downward movements were relatively minor. There was one factor that affected all products – demand remained poor. Many converters are still unhappy with their orderbook situation. In most cases, it was packaging applications that ensured that they at least had something to do. Once again, there were also a few more positive signals from the heating and sanitary industry and from the logistics sector. Because there were indications very early in the month of significant price increases for February, many converters topped up their stocks to make sure they had plenty of favourably priced material. The ethylene contract is likely to follow the rise in the cost of naphtha. In the last third of January, one producer had already made his intention known on the market that he would be calling for triple-digit increases – in an attempt improve the miserable margins.

PP: The market for polypropylene got off to a fairly quiet start in the new year. The same was true for prices, which essentially adopted the C3 rollover. Demand remained manageable in the short production month of January, even though there were more orders than in the same month last year due to stock replenishment effects and advance purchases. Sufficient quantities were available. In the case of injection moulding grades, this also included residual stocks of imported material from the US. However, the supply of film qualities thinned out somewhat due to production cutbacks and cancellations at European plants. However, no allocations were reported, let alone cancellations. The situation is likely to change next month. As hardly any imports are arriving, the production cuts are taking effect and supply is falling. Since the C3 contract is also likely to follow the rise in naphtha quotes, higher prices for polypropylene can be expected in February.

PVC: The rollover of the ethylene contract for January 2025 set the direction for PVC prices. As the negotiating parties lacked arguments for securing a different outcome, all the different variants resulted in a sideways move. Despite this, purchasers were delighted at their new starting prices, since these were once again significantly down on the prices for the previous year. The supply situation in Europe was still more than adequate and contracts were met in full. This was partly due to the ongoing slump in demand. Although call-offs improved somewhat compared with December, they were still at a low level overall. Two announcements from Eastern Europe have now caused a stir. Both Spolana and Fortischem have declared that they intend to discontinue PVC production midway through the year at the latest. With capacities of 130,000 t/y and 95,000 t/y, respectively, these closures are unlikely to have a significant impact on the supply situation in Europe. The announcements will nonetheless send a clear signal to the market. These latest developments will no doubt be addressed in the price negotiations for February, since all European producers are dissatisfied with one thing – their current margins. The stage has thus already been set for price increases, although the precise extent of the hikes still has to be agreed on. One major producer has already announced in talks that they will be asking for a high double-digit increase.

Styrenics: The combination of weak market demand and thin producer margins has left styrenics prices largely following feedstock cost developments for months, with no other market drivers. This trend continued in January 2025, when the styrene reference price increased by EUR 36/t. Polystyrene quotations subsequently increased by EUR 30-40/t, while the average premium on EPS was only slightly smaller at the start of the year. The cost components ACN (down EUR 21/t) and butadiene (rollover) slowed the upward trend for ABS, leading to price increases that were, again, slightly smaller. Once more in February, the cost change will likely set the course. Accordingly, the increase in the styrene price for February (up EUR 45/t) is bound to fuel another price rise for PS and EPS. This also applies to ABS, where the component butadiene (up EUR 45/t) is also driving up costs. In addition, the ACN contract for February, fixed late, was up EUR 56/t.

PET: As expected, the European PET market had a slow start to the year. End markets continued weak and inventory replenishments by converters were few and far between. Many are waiting for the results of the German elections on 23 February to determine the way forward. On the production side, which was already subdued, protracted PX-contract negotiations resulted in uncertainty, as did the repeated supply bottlenecks for PTA and the high energy costs. At the same time, the euro went up slightly against the US dollar. Against this backdrop, European suppliers had very limited scope for significantly asserting their demands for more money. As a result, only small hikes were achieved. No momentum has emerged on the demand side, with customers continuing to buy only what they strictly need. Despite this, the overall conditions for European producers could result in prices rising slightly in February again.

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 2025: Price slump not yet halted, but rollovers dominate / Demand down, supply up / Positive trend expected for February

The price slump that has been ongoing for some time in Western Europe did not come to a complete halt in January. Though some producers announced increases following the rise in the cost of benzene, they were often unsuccessful in imposing them. Supply was in most cases fully adequate to meet demand – utilisation rates were gradually raised, with an eye firmly on the automotive crisis. Fewer imports were registered than previously expected. Following the reduction in stock levels at the end of last year, January witnessed a slight uptick in ordering activity, as expected. The revival nevertheless left much to be desired.

For February, chances are that producers will again call for hikes. However, it is highly unlikely that they will be entirely successful as demand remains sluggish. Prices have, at least, seem to have bottomed out, which means minor increases are possible. Although February is a relatively strong production month, very little is likely to change as regards the weak demand situation.

PA for the automotive sector, where every cent counts, is an exception to the general rollover trend. Prices fell by EUR 25/t in January, and the downward price spiral is set to go at least one more round in February as the crisis in car production is simply too acute. Converters are almost exclusively buying only what is deemed necessary for the near future. They are restocking to maintain the minimum reorder levels logged in ERP systems, and only rarely in excess of that.

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 2025: Slight downward trend continues / Weak demand with steady supply

The market environment did not change at the start of the year – the combination of a steady supply situation and weak demand once again put pressure on prices for MDI, TDI, and polyols. The stable prices for ethylene and propylene could also not prevent this, nor could the rise in the cost of benzene.

The overall picture is unlikely to change much in the coming weeks. It is therefore likely that prices will continue to fall slightly, provided that supply and demand remain as they are at the moment. There are no signs of positive impulses in terms of demand. The most likely would be a change in the supply situation that could put an end to the slight downward trend. At the Heimtextil trade fair in Frankfurt, Germany, market participants were already placing bets on when a major producer would next declare force majeure.

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 2025: Downward trend continues due to weak demand / Resin prices expected to increase in February / Glass fibre set to remain unchanged

The new year got off to a really bad start. Neither the customary inventory replenishments nor the basic level of demand were especially noticeable. Automotive engineering was scarcely able to gain a foothold. Furthermore, although the construction and E&E segments reported isolated restocking orders, overall demand remained very limited. No substantial changes are expected in the weeks to come, either. Demand will be able to pick up somewhat, at a low level, since there will doubtless be warehouses in need of restocking here and there. Most converters, however, are only ordering what they strictly need.

A number of market participants expect the rising styrene prices of the past two months to have an impact on resins in the coming weeks. A slightly smaller group, however, points to the meagre replenishment effects seen so far and thinks that rollover agreements are more likely.

In the case of glass fibres, high logistics costs meant there were few imports from Asia. This considerably reduced the pressure on prices. Despite this, converters were able to achieve slight reductions in isolated cases. The price level is not, however, set to change significantly over the weeks to come.

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 2025: Prices mostly roll over again / Demand remains weak / Imports further distort market

After negotiations opened with attempts to at least slightly raise prices for high-quality grades, market players mostly agreed on another rollover. A couple of suppliers were even forced to make price concessions. Input-material costs – especially those for sorted waste – remain high. This is why recyclers are keeping the utilisation of their lines to a minimum. Many of them still have enough stocks, anyway.

Initial, weak stimuli from restocking improved demand at least slightly compared with the previous month. However, the underlying demand was still described as “insufficient” or weak. The difficult situation for recyclers is already reflecting in bankruptcies, as a look to the Netherlands and, more recently, Belgium shows.

There are no signs of actual stimulation of the market (yet). Volume calls are expected to remain at a low level in the coming month. In addition, affordable alternatives such as off-spec material or even imports of virgin material falsely relabelled as recyclates continue to enrich the market and distort competition. As a result, recyclers’ margins are being eaten up further, especially as energy costs and grid fees have recently increased again.

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 2025: December’s ordering boom comes to an end / Compounders resume production gradually / Polypropylene trends differently from the rest

The significant rise in incoming orders before the Christmas holidays failed to continue in January. In the case of ABS recyclate, this led to price changes somewhere between a rollover and a reduction of EUR 30/t. Very soon after the start of the new year, the majority of compounding plants gradually returned to normal operation. Supplies of base material were good, although for many compounders purchasing costs remained high. Once again, demand was very poor for all grades.

In view of the below-normal demand, recyclers might again in February have to abandon their hopes of higher prices and at least try to push through a rollover. They should also be successful here, with just a few exceptions. With the continuing good availability of base material, output should remain normal. Except for the first stock-building activities, members of the PIE panel see little reason for an increase in demand. A trend turnaround is not expected until Q2 at the earliest.

One exception to the general trend is the PP compounds – here, recyclate prices seem to have already bottomed out. In a balanced market, compounders were able for the first time in a long time to push through price increases. Compounding lines were put back on stream less quickly than with the other engineering thermoplastics. Nevertheless, there was no problem fulfilling existing contracts. An improvement in incoming orders plus the first small steps to build stocks could significantly stabilise demand at a low level. The firmer prices for primary material mean that compounders are also speculating on slightly higher prices for recyclate

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!