Price Reports July 2019
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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! |
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Articles: July 2019 |
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Standards Thermoplastics |
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Standard Thermoplastics July 2019: Polymer price developments oscillate around the parameter of decreased costs / Reductions result in only slightly livelier demand / End markets likely to stay calm in August too
PE: The EUR 75/t fall in the European C2 reference set a clear signal for July. Most PE prices fell by about the same amount, although, depending on the starting situation and type, it was sometimes a little more or a little less. After producers granted the necessary reductions, buyers’ restraint eased a little. Many of them suspected that prices had bottomed out and therefore decided to stock up. Consequently, converters can look calmly ahead to the coming weeks. August will be quiet in most parts of Europe. Although the C2 reference has risen EUR 10/t, it is not certain that this will be reflected in August’s prices. It remains to be seen to what extent the hot weather will lead to further production cutbacks and whether the upcoming maintenance turnarounds in central Europe will reduce supply. Price rises should be difficult to push through.
PP: Producers’ initial attempts to avoid passing on all of their cost relief from the lower C3 contract fizzled as the European market was flooded with special offers. Most suppliers offered a rebate of at least EUR 80/t, for copolymers even more. Here, notations bounced back to the February level. In many contracts, compound prices moved in tandem with the indexed material. Demand slowly livened up, but only gained noticeable momentum after producers made concessions. The market for compounds was very quiet, and producers adapted output further to the weak demand. The C3 reference contract for August is trending firmer, but demand is not strong enough to move compound notations upward. The summer lull could be punctuated by watchful buyers anticipating a price rise in early autumn. The market for compounds should remain quiet.
PVC: On the European PVC market, price reductions in July fluctuated around the pro-rata C2 reference. In the first half of the month, producers could sell large volumes without passing on their savings in their entirety but later, processors were increasingly able to achieve the full amount. Given the low demand, irregularities in production did not lead to bottlenecks. K70 grades remained firmer due to relatively scarce availability. Additive notations moved in different directions. White pigments and modifiers rose, while plasticiser prices are still under pressure. PVC producers will be trying to make good their margins on account of the caustic soda market situation. Tough negotiations are expected. Supplies are set to become scarcer due to upcoming maintenance, and demand will continue weak. A number of high-volume purchasers are expecting to have reduced volume requirements.
Styrenics: Styrenics prices in Western Europe followed the continued erosion of the SM reference or, in the case of ABS, the decreasing composite costs. Some producers initially tried to keep part of the cost savings, but generally they could not get the desired margin increases. In mid-month, they even had to make concessions in order to sell larger volumes. Demand remained weak. The slowdown of the economy, automotive slump and shortage of tradespeople dampened the buying mood. The market is unlikely to change in August. In Southern Europe, the holiday season is just starting. However, maintenance cycles are due from September onwards, so that producers might sell extra volumes only with surcharges. As expected, the SM reference was fixed more firmly – by EUR 33/t higher at EUR 1,027/t – which means that polymer price hikes are expected.
PET: In July, the European PET market was still characterised by oversupply. Demand picked up in the final third of the month with the heat wave that swept across Europe. Most transactions had already been completed by then, however, and imports were making their way onto the market again. Three digits have featured after the minus sign throughout June and July, corresponding to the development in basic costs. Despite the upswing in demand triggered by the heat wave in later July, shelves remained well-filled. Imports were abundant, even if not as attractively priced as in prior weeks. The PX reference seems to have stabilised in July, and the cost side remained calm. The summer weather should push up demand to the normal level again. Notations could then stabilise or firm.
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 July 2019: Slump in auto industry broadly drags prices down / Only PBT and POM still stable / Reductions in quarterly prices will add pressure to monthly transactions in August
In July, Western European prices of engineering thermoplastics continued a downward journey that began in autumn 2018. Even though there have been occasional reports of demand “recovering slightly”, this cannot conceal the fact that the situation in the automotive sector remains critical. With most traditional engineering polymers, the Q2 agreements had previously been downsized, and the first slices of this also affected the monthly distribution business. Buyers insisted everywhere on price reductions, most of which were then granted. PBT and POM remained the exceptions, with market niches outside automotive providing a certain amount of compensation.
With the commodity-related materials, the falling feedstock reference prices clearly showed the way. Coupled with the weak sales in the still very slow automotive segment, there were consequently significant price cuts with ABS and even more so with PP compounds.
For producers, the situation is unlikely to improve in August. Although prices could become stable to firmer for PP compounds and ABS, there can only be one direction for the other engineering thermoplastics, namely downwards. The automotive crisis is continuing, and the situation will be made even worse by the start of the summer holiday season in many parts of Europe, especially in the south. It is more or less certain that buyers will receive the next slice of the quarterly reductions in August.
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 July 2019: Producers achieve hikes for polymeric MDI / TDI surprisingly firm / Pure MDI and polyols flat / Output adjusted to demand
On the whole, European demand remained flat in July. Nevertheless, producers of polymeric MDI achieved moderate increases, thanks in part to impending maintenance turnarounds and minor outages. TDI producers made surprising gains. Buyers already scorched by the price surge of 2016 to 2019 were exceedingly nervous, and minor outages and turnarounds made them even more nervous. All other PU starting materials, including pure MDI and polyols, moved sideways. Production costs for polyols along the key olefin chains were lower, however.
In August, the already weak demand could become even slacker. At the same time, production is being curbed and plants are in maintenance mode. TDI could trend firmer and both MDI grades remain stable, while polyols could come under pressure from the general price downswing along the olefins chain.
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 July 2019: Ortho resins follow styrene downward / Demand recedes / Glass fibre prices still stable / Downward pressure continues
Parallel to the price declines for styrene monomer and phthalic anhydride, European notations for ortho resins lost ground in July. The declines were minimal, however. The previously seen robust demand began to deteriorate as the malaise in the automotive industry worsened. The glass fibre market saw heated discussions, but due to long-term contracts, downward pressure was deflected. In the roving segment, very cheap special offers attracted attention.
In August, the composites market is unlikely to see any positive impetus – quite the contrary. Due to the slackening holiday-related demand, resins producers will be hard pressed to push through even the moderate rise in the styrene reference contract. It looks more likely that the month will see modest rebates. In the glass fibre segment, roving prices look likely to come down. In contrast, notations for chopped mats probably will remain stable.
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 July 2019: Slight discounts on some rLDPE, rPP and rPET grades / Favourable virgin material offers and onset of the holiday season dampen demand / Further discounts expected
Prices of some standard recyclate grades on the Western European market declined somewhat in July 2019. Declining virgin material notations thwarted recyclers’ moves to hike sales prices for recycled polyethylene and recycled polypropylene on the grounds of increased costs. With rPE, rPP homo and rPET flakes, suppliers even had to grant slight discounts. There were also reductions for both coloured and dark rLDPE, as some recyclers pushed lower-specified grades onto the European markets after losing important export markets in Asia.
The downward trend should gain momentum in August. This is because all secondary materials are increasingly feeling competition from low-cost spot offers for virgin materials. In addition, demand is declining since many buyers are reducing or even stopping production during the holiday season. Some recyclate suppliers are using this period to build up inventories for the expected strong business in autumn.
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 July 2019: Notations give way across the board / Only recycled polyamide 6.6 and certain rPOM and rPC grades escaping downtrend / Decline set to affect all materials in August
The downward trend in engineering recyclate prices in Western Europe affected further materials in July. While there were only isolated corrections for recycled polycarbonate and rABS in June, rPA 6 and natural rPOM have now experienced considerable reductions too. This was prompted first and foremost by the weakness of the automotive sector, which in turn has triggered oversupply and declining prices for virgin material. Demand from processors was also reduced due to the start of the holiday period.
These negative tendencies will doubtless intensify over the coming weeks. The holiday peak period will be in August, and the price reductions in virgin material resulting from the weak auto industry are increasingly impacting notations for recycled engineering thermoplastics. With this in mind, further price drops can be expected over the month to come – and these will affect all the engineering recyclate grades.
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!
