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

 

 Standard Thermoplastics June 2018: PET goes through the roof / Otherwise weak cost pass-through for all types / Market not in full swing / Strong margin pressure / Classic summertime slump beginning

PE: The price hikes called for by European PE producers soared in June. Against the EUR 63/t increase in the C2 reference, some announced triple-digit hikes, but they were largely unsuccessful. The scales tilted in favour of the buyers, and producers in most cases could factor in at best the increased costs. The depreciation of margins has assumed threatening proportions, and in some cases the pain barrier has been reached. As a result, producers' attitudes are hardening. In July, they intend to put a stop to margins deteriorating, which means at minimum a rollover as the C2 reference stayed put. Import-prone segments are at present too unattractive to tempt importers. On the other hand, many customer segments are looking solid but not dynamic. There is a lack of stimulus on the market, and stability is expected to be the most probable scenario.

PP: The C3 reference contract for June was fixed substantially higher, but producers were not always able to lift prices for standard PP to the same degree. Distributors were only too happy to charge more for material bought at lower cost. Appealing to buyers unwilling to pay unanticipated increases, they undercut any hike plans producers might harbour. For compounds, the supply side had no difficulty passing on higher costs. On the whole, supply was sufficiently long. For standard grades, demand was weaker, but still within the normal range. Ahead of slackening automotive demand and production, compounds sold well. The rollover of the monomer reference contract should dominate July trading activity in a market shifting into summer mode.

PVC: Europe's PVC producers were a long way off being able to push through their demands in June. They were not capable of achieving half the pro-rata cost increase resulting from the EUR 63/t hike in the C2 reference contract. Apart from restrained demand, transatlantic imports undermined their endeavours too. Free volumes were offered at such tempting prices that even quality-oriented buyers succumbed to the temptation. Producers had to accept margin losses. Compounds also remained weak. The full cost increase was only priced in for PVC paste grades. Little movement is expected in July, particularly since C2 is trading slightly lower again. A rollover would seem to be likely.

Styrenics: European styrenics suppliers had clearly imagined June would be different. They started with demands for three-digit increases, but customers proved to be highly reluctant buyers. There was talk of a “pre-summer lull” in some segments, but there were no significant production problems. In many instances, the agreed prices did not reach the significantly increased SM cost reference. July’s crumbling SM reference has all but counterbalanced the June increase. Many segments are feeling the holiday atmosphere. The warmer the weather, the cooler the economy, it seems. A classic, deep summer slump could be imminent, and styrenics prices are unlikely to reach even the propagated rollover.

PET: The wild ride on the European PET market continued into June 2018. After prolonged calm and oversupply, the PET market is this year experiencing depths of undersupply previously unseen by many players. Everything is going haywire. Extremely tight supply caused prices to skyrocket further, especially on the spot and trading markets, and widened the gap compared with the contract market. As expected, the negotiated contracts have now been affected across-the-board too. The hikes ranged from EUR 100-200/t. The situation was scarcely made better by signs of an improvement in the production situation in Belgium, the commissioning of a new plant in the Baltic region and the prices from the Far East, and which are stagnating. New volumes were swallowed up. Even if some players are expecting prices to level out in July, hikes are still on the cards, with no easing of supply in sight and indications that the beverage season will run well. Only at the start of autumn could things presumably calm down again.

 

 

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 June 2018: Market remains stable at high level / ABS and PP compounds move up / Dark clouds hang over PA 6.6 again / Storm continues / POM under upward pressure

In many segments, the European market for engineering thermoplastics was relatively calm in June. After the frequent price hikes of the last few months, this came as a welcome breather, albeit at a high level. Nevertheless, the atmosphere was still characterised by some difficult pre-negotiations for the coming quarter. On the PA 6.6 market, the renewed force majeure at BASF put an end to hopes of any easing of the situation. Buyers continued to be under extreme stress as they tried to get hold of material and at the same time keep an eye open for alternatives.

This situation provided a certain amount of support for the PP compound notations, for which demand was surprisingly high. Here, the increased production by automotive OEMs ahead of their extended summer shutdowns provided a boost to demand. The prices of the other commodity-driven material, ABS, also rose due to the increase in costs.

In July, PA 6.6 in particular will face difficult times. Producers have already called for hikes of up to EUR 600/t, and increases are unlikely to be lower than three digits in the monthly transactions. There are also indications that POM will rise as the production problems continue. With PMMA, prices could fall for the first time in many months, and the quarterly negotiations are certainly pointing downwards. ABS should ease as the costs of styrene and butadiene have fallen. PP is tending sideways like the other engineering thermoplastics. With PC, PA 6 and PBT, the situation appears stable, although prices are still high.

 

 

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 June 2018: Chaos on isocyanates market / Prices move in both directions / Trends hold / Demand from some applications clearly weaker

In June, European polyurethane markets were in a state of chaos for the most part. Polymeric MDI gave up some ground but the pure grade unexpectedly shot up like a rocket, while TDI prices took a surprising step downward. Due to firming starting materials, polyols notations remained largely unchanged.

Weaker demand put downward pressure on prices. Orders for insulation grades in particular sank noticeably, due to increasing substitution in this market. Inventories at producers were long, which led them to reduce output – and this had dramatic repercussions for pure MDI. Ironically, the tightness of the pure grade and the resulting price surge were in part caused by overproduction of the polymeric product, which was worsened by an outage in Spain. The usual gap between the two grades has meanwhile been more than reinstated and could widen further in July.

On average, TDI prices crumbled further in June, this time noticeably, by around EUR 130/t. In some cases, the bottom dropped out, and the notation plummeted by as much as EUR 400/t. If the market in Asia – which usually sets the pace for price movements – loses further momentum, European prices could again see additional sharp declines in the coming weeks and months. In China, the isocyanate's notation has dropped by nearly EUR 700/t over the past three months.

 

 

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 June 2018: Uneven movement for ortho resins / Minor price hikes / Demand rises ahead of summer holidays / Glass fibre products unchanged

The roller coaster ride of European notations for styrene monomer seen over the past several months has influenced ortho resins prices more than in the past. June saw uneven development as some buyers reported a slight decline while others were still dealing with the higher prices of May. On the whole, prices eased somewhat, but on the monthly average the decline did not exceed EUR 10/t. After the bank holiday-studded May, both production and demand from buyers moved back into full swing. Converters ordered briskly ahead of the approaching summer holidays.

The decline in the July SM reference contract and weakening demand during the summer months will likely put further downward pressure on resins prices. The maintenance turnarounds for phthalic acid anhydride will probably not play a significant role. The Q3 maleic acid anhydride contract could take some time to be settled, as the negotiating rounds have just begun. At press time, expectations of buyers and sellers were still far apart.

Notations for glass fibre products were largely unchanged in June and probably will remain flat over the summer, despite the various rumours of possible hikes.

 

 

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 June 2018: Prices largely sideways / Hikes only for rPET and rHDPE blow moulding grades / Demand up slightly / Costlier virgin material will drive rPP

After a round of price increases in May, most notations remained stable in June. A few catch-up hikes were spotted here and there. However, only rPET and rHDPE blow moulding grades rose on a broad scale, with the limited supply playing into recyclers’ hands. Logistics continued to cause problems in many places, as free forwarding capacities remained tight.

As expected, demand for recyclate increased in June after the short production month of May. Next month, however, demand is likely to be dampened again when summer holidays get under way. At the same time, the effect on recyclate prices should be relativised by the rising cost of virgin material. Recyclers even see potential for slight premiums on rPP, which has been moving horizontally for months.

 

 

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 June 2018: Bottleneck for rPA 6.6 dogs market / Dramatic hikes / rPC consistently tight / Demand still lively / More increases sure to come in July

The turbulence along the PA 6.6 chain in June overshadowed otherwise comparatively uneventful weeks for engineering recyclate. Hikes pushed through for rPA 6.6 materials by a number of players ranged as high as EUR 300/t. Over the month, rPP compounds also trended firmer as the rising propylene price ultimately proved too great to keep either primary PP or recyclate stable. The other grades saw a rollover, even though a number of suppliers were itching to achieve more.

Base material was in sufficient supply in most cases. PA 6.6 was the glaring exception here along with – to a lesser extent – PC. Most production facilities were being run flat out. Brisker demand and to some degree restocking after the spate of public holidays in May were the driving factors.

The coming weeks could see price increases on several fronts. The PA 6.6 market remains particularly tense following the recent outage in Seal Sands / UK. In other markets, rPC, rPC/ABS blends and possibly rPOM could also see some upward momentum. Supply of base material is likely to remain unchanged for the most part. Demand will continue to be buoyant.

 

 

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!