Price Reports July 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: July 2018
Standards Thermoplastics Engineering thermoplastics Polyurethane Feedstocks	Composites/GRP Standard Recyclate Engineering Recyclate

 

 Standard Thermoplastics July 2018: Notations for PE and PVC slightly lower / PP stable / Styrenics follow SM reference down / PET reaches the top / August will be long, quiet sunny month

PE: European PE markets in July were influenced by the EUR 15/t fall in the C2 reference. Buyers wanted to see this cost reduction reflected in their prices, but that did not always happen. In certain niche areas, notations rolled over, but in other areas the price changes ranged from stability to the full cost reduction. Ordering remained mostly solid, and was brisk with any applications connected to beverages. The heat wave ensured above-average activity in this field. August is starting with a continuation of the hot weather. The holiday period in the southern part of the continent will create a significant lull in demand. Many production plants have since switched to summertime operation, and there have also been several forced stoppages due to the hot weather. The C2 reference moved sideways. The outcome this month is then likely to be a rollover.

PP: There was little movement in the European PP market in July, due to a lack of impetus from any side. In view of the tightness, producers rattled sabres a little, but as converters still saw little inclination to order all that much, their suppliers had no choice but to pass through the C3 reference contract rollover on a wide scale. Where prices were already very high, a few buyers won concessions. The compounds market was largely quiet. With southern Europe on holiday and order volume slack, a few price concessions might seem to be in store for August. Even if low, producers’ inventory levels are sufficient to meet reduced demand. However, due to the unexpected rise in the C3 reference contract, a rollover could be the most likely scenario.

PVC: European PVC producers have again suffered margin losses on many deals in July. The desire for a constant margin, which would have corresponded to a price reduction of EUR 7.50/t, was more like an exceptional success. In some rare cases, the margin could even be extended through a discount of just EUR 5/t on the price of PVC. However, agreements were mostly EUR 10/t lower. The already weak market – especially in the profiles segment – suffered an additional hit from the summer holidays. There is no indication that the market will change significantly in August. The holiday season continues to limit demand, especially in southern Europe. If there are no unexpected major downtimes, availability should remain good, especially as the maintenance cycles in France are almost complete.

Styrenics: In July, the decrease in the SM reference clearly set the course. Styrenics prices declined across the board. EPS was the only material for which the cost reduction was not transferred in full, as the construction season provided brisk demand. Demand for PS was noticeably reduced by the start of the holiday period, and ABS was marked by the increase in Asian imports. During the peak holiday season in August, this effect is likely to intensify, too. When that happens, styrenics prices should also decline further, at least if the cost base erodes again, as is widely expected. The SM reference contract was not yet available at press time, but after the discount on benzene of EUR 52/t and the ethylene rollover, there is little to prevent a continuation of the downtrend.

PET: The price rise of the last months on the European PET market came to a stop in July, yet spot notations remained at their high level. The monthly contracts for small to medium quantities also remained largely stable, but continued to retain the unusual gap between them and the trading market. Large to very large orders mostly moved sideways, with little stimulus from the main factors governing the costs of precursors. The galloping prices have come to a standstill mainly due to the tendency to an improved market supply. Turbulence in Asia has settled down and the first favourable offers from China fluttered onto the tables. Although material is unlikely to arrive before September, the prospect of this happening brought some relief, particularly as the key facilities for the precursor PTA at Geel / Belgium went back on stream and thus also opened the way to the supply of downstream production lines. On top of that, a new production line has started up in the Baltic region. The prospects for autumn look far healthier. In August, things will presumably remain stable because the additional volumes likely to become available are already much sought after. Added to this is the fact that the heat wave in Europe has led to a sharp rise in the demand for PET bottles, which could ensure stability.

 

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 July 2018: Next explosion of PA 6.6 prices / Otherwise mostly stable conditions / Demand noticeably shrinks / Minor movements expected in August

Declining demand in July was the main reason for stagnating prices of engineering thermoplastics in Europe. For many grades, supply improved for the first time this year due to the rather restrained outflow. There have even been the first announcements of reduced delivery times for PC and PA 6. The exception was PA 6.6, which remained heavily troubled. Further production cutbacks have prolonged the ongoing scarcity. Prices skyrocketed, and monthly buyers were hit by the producers’ full broadside in the starting month of the third quarter. By contrast, ABS declined due to a slumping styrene. All other grades mostly moved sideways, including PP compound grades that are close to commodities.

In August, things will probably continue to move largely sideways. Demand should further decline across the board, as a summer slump is expected. However, supply has been adjusted to the situation, so that there should be little reason for change. Considering the price spike at the beginning of the quarter, things are likely settled for PA 6.6 for the remainder of Q3. Meanwhile, PMMA customers are increasingly grumbling, but it remains to be seen whether that will be enough to achieve discounts in August.

 

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 July 2018: Pure MDI still soaring / TDI prices subject to less pressure / Polymeric MDI and polyols largely stagnating / Trends set to continue in August

In July, the European market for polyurethane feedstocks was again characterised by diverging developments. Polymeric MDI was tending towards oversupply and moved neither up nor down, while the pure MDI grades continued to skyrocket, even changing up a gear. TDI fell for the third month running. The records attained during the price explosion of the past two years are now taking their toll, with more and more air escaping from the resultant bubble. Polyols moved sideways in the shadow of the main components, displaying a slight upward trend from time to time.

The situation for pure MDI was still clearly one of undersupply, with the remaining isocyanates continuing to tend towards oversupply, which was very pronounced in the case of TDI. Polyols did not display any notable developments in this respect.

Respective trends for the individual components are likely to remain more or less the same in August against the background of seasonally weak demand, and in the case of TDI, structurally weak demand too. Only pure MDI is still attracting a great deal of interest, doubtless due, to some extent, to the downtrend in supply.

 

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 July 2018: Ortho resins gain slight momentum / Costs passed on / Glass fibre products unchanged / Summer holidays dampen demand

Prices for most ortho resins gained some momentum in July as producers passed on their higher costs. Styrene gave way somewhat in July, and maleic acid anhydride rolled over, but notations for phthalic acid anhydride rose. Parallel to this, prices for some resin products were swept upward by a force majeure for dicyclopentadiene (DCPD). Notations for glass fibre products were largely unchanged.

Demand for ortho resins and glass fibre was dampened by the beginning summer holidays, an effect that should strengthen somewhat in August, when the season heads towards its peak. Many players have shuttered their plants and joined the crowds on the beach. For the next few weeks, it is thus unlikely that the market will see any major price movements. No one seems to have batted an eye over the EUR 20/t rise in the SM reference contract for August.

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 July 2018: Prices broadly trending upwards / Rising interest in recyclate usage drives demand / Recycled PET continues to soar / Holiday season to dampen demand in August

Prices of most recycled plastics on the European market have risen again after a breather in June. With rLDPE and rPP, recyclers benefited from various industries' growing interest in using more recyclate for manufacturing products. Both rHDPE and rPET notations received an additional boost from seasonal effects and high purchasing costs.  However, the potential for further price increases is likely to fade in the weeks to come. In many sectors, demand will decline at the height of the holiday period. Recyclers will then have the opportunity to restock inventories before the expected pick-up in demand in autumn.

 

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 July 2018: Primary product increases roll through secondary market / Large hikes for rPA 6.6 and rPC / Brisk demand continues / Varying trends in August

Prices of most engineering recyclates rose in July. With the dramatic situation in the rPA 6.6 chain continuing, rPA 6.6 suppliers were able to push through three-digit hikes. Producers of rPC also managed this, passing on the higher purchasing costs for base polymers and additives to their customers. The prices of rPOM and rPC/ABS blends also rose, but to a lesser extent. By contrast, notations of rABS, rPA 6 and rPP compounds remained stable.

Demand was brisk, despite the start of the holiday period, and often exceeded the meagre supply – especially for rPA 6.6, where the market is characterised by extreme scarcity. The peak of the holidays will probably bring only minor relief there, so three-digit price increases are likely for August too. The hikes for rPOM, rPC and rPC/ABS blends should be less pronounced, while reductions can even be expected for rABS and rPA 6.

 

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!