Price Reports June 2022

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 June 2022: Processor-friendly price trend tops even decline in feedstock quotations / Automotive industry, DIY market and construction sector see weak demand / PET alone experiences an upswing

PE: Not only but also for LD films, the European market was processor-friendly in June: although there was a rollover for the C2 price, the polymer went downhill. Furthermore, additional imports and steadily declining demand put pressure on prices. European production, meanwhile, continued in an orderly fashion across all types. Imports ensured that the base of available goods was broad and that contracts could largely be fulfilled. A strange occurrence on the sidelines: in some cases, the abundant supply even led to additional quantities being virtually forced on some processors. But there is a sense of insecurity everywhere. The summer slump is reinforcing this trend. The car sector has sunk into complete lethargy, the DIY market is as good as dead. Processors are waiting for lower prices in the upcoming months. The C2 price for July fell by EUR 100/t. This is likely to keep up the pressure on polymer prices.

PP: Despite the decline of only EUR 10/t in the June C3 contract, the polymer price collapsed completely. Contracts agreed upon at the beginning of the month had already seen relatively steep rebates, and producers had to watch with dismay the further deterioration of their selling prices as June progressed. The film segment was hit harder than injection moulding. Thanks to sufficient capacity in Europe as well as the imports present in the market, supply was ample. Ironically, at a time when there was enough material for special offers, demand shrank. Due to the slack demand, converters ordered only the bare minimum. The July C3 contract sank by EUR 120/t, but the polymer price should sink much more substantially, as demand will continue falling. Some converters will try to deal with the demand slump by extending plant holidays or thinning out shifts in the factory.

PVC: European PVC prices gave further way in June against a backdrop of weakening demand and a somewhat improved supply situation. This was after they had already declined in May following two years on the rise. Only limited price reductions were seen for base material in this final month of Q2, and these reductions were confined to specific regions. In German-speaking countries, the price trend for S-PVC base resin followed the rollover for ethylene in most cases, but favourably priced imports from Turkey exerted pressure on terms in Eastern Europe. No essential changes resulted for S-PVC (U) either, since the higher costs for titanium dioxide largely offset price reductions for base material. This downward trend is set to gain momentum in July. On the one hand, the cost base has fallen on account of the C2 price reduction for July. On the other hand, demand is still under pressure. The seller’s market is evidently starting to give way to one for buyers.

Styrenics: The market is challenging. While demand in Europe is noticeably weakening in many customer sectors, prices are still at record levels (EPS) or only slightly below (PS, ABS). Against this backdrop and after a slight increase of EUR 16/t in the styrene reference in June, the producers were only able to slightly increase prices for EPS. For PS and ABS, on the other hand, some suppliers had to concede significant discounts in some cases, while others aimed to keep prices at least largely stable following the failed attempt to factor in energy costs. The massive EUR 155/t premium on styrene in July doesn’t make things any easier. There are no foreseeable stimuli that could reinvigorate demand. On the contrary: signs of a slowdown have appeared in the construction sector, especially as many construction sites are at a standstill because of a shortage of materials. The price structure for PS is now so elevated that some processors are actively considering alternative materials again. In fact, the general situation is anything but rosy.

PET: The market experienced a clearly noticeable upswing in June. While demand remained surprisingly subdued in May, the usual seasonal surge started in June. European producers had lower output following the weakness in May. Due to the increase in feedstock costs, they were demanding triple-digit hikes in some cases. Highly attractive import offers, however, provided an alternative. Pressure on the feedstock side is set to increase further in July. The aromatics fraction from crackers is currently being sent to the reformate plants for blending more frequently than usual due to conversion-related bottlenecks for petroleum. This is also further increasing PX prices. Against this background, European manufacturers are demanding three-digit hikes once 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 June 2022: Regional price spread increasing dramatically in Europe / Precursors costs cannot be passed on / Lower demand from customer markets

If there ever was a “European market”, it has certainly become a thing of the past by now. Instead, pricing shows that there are four to five individual markets with terms that differ from each other, sometimes drastically. This is true for almost all types and varieties. For example, the ranges in the price reports for polycarbonate fluctuated between a minus of EUR 100/t and a plus of EUR 210/t.

On the cost side, benzene rose significantly in June, by EUR 219/t. But this increase could not be passed on because processors simply cannot keep up. Demand from construction-related end-user markets and from the E&E sector has declined significantly. The automotive sector is not emerging from its vale of tears, and the expected inventory replenishments were not noticeable either. With summer now here and plant activity partly reduced, this trend is likely to intensify. The PA 6 market in particular is hard to believe – the price range here runs from a minus of EUR 350/t to a plus of EUR 150/t. Quotations have fallen particularly sharply in Eastern Europe.

Benzene became significantly more expensive again in the July contract (up EUR 386/t). This has already led to price announcements from producers with increases of EUR 100-250/t. However, in view of the weak demand, these are likely to only be implemented here and there – and certainly not in Eastern and Southern 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 the entire report, go to www.pieweb.com and sign up for a 48-hour free trial!

 Polyurethane feedstocks June 2022: Declining demand puts significant pressure on prices

The slight increase in upstream product benzene put MDI buyers in a convincing negotiating position for the first time in several months, and they were able to reject producers' desired mark-ups. TDI even saw a slight decline in prices after the previous high due to weak demand.

Applications for the construction sector continued to draw decent volumes in May, but the automotive sector remained in its vale of tears. In the comfort industry, weak ordering activity continued but varied strongly according to region. Demand from Eastern Europe in particular was hardly noticeable.

For June, market participants only expect minor price movements. With the exception of robust orders from the construction industry, most buyers forecast weak demand. This is particularly true for the comfort industry. If, as was learned during the discussions with the PIE panel, some Eastern European processors partially stop production, this could have devastating consequences for ordering activity going forward.

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 June 2022: Resin prices still rising / Summer holidays to curb ordering / Styrene to be the price driver in July / Glass fibre could soon see a rollover

The peak seems to have been reached, at least as far as the upper end of the PIE range goes. The June styrene contract price rose by only EUR 16/t, but resin prices increased more substantially. The upward momentum was concentrated mostly at the lower end of the range, however. Movement at the upper end was largely flat. Buyers of large quantities, on the other hand, were not only able to achieve a rollover, but even push the price down a little here and there.

Styrene climbed still higher at the beginning of July, as the monthly contract surged ahead again noticeably, this time by EUR 155/t. Fresh price rises for resin are now in sight, even if earlier indications were that prices would plateau.

Glass fibre products saw mainly minor increases, with standard chopped strand mats being an exception. In particular, the continued strong demand for roving supported firmer prices. In July, a rollover could be the rule rather than the exception.

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 June 2022: Low imports, high demand fuel price increases

The secondary market is increasingly decoupling from the virgin material market. While the latter is declining in the triple-digit range, demand for recyclates is trending up. Along with moderate import volumes, this is leading to a price increase across most grades.

Unlike the virgin materials market, however, the general fear of recession has not (yet) reached the recycling market. By consequence, there is no decline in demand as yet. Quite to the contrary, the automotive industry is slowly waking up from its big sleep, and the E&E sector was and remains a driver. The construction industry, which suffered some dents in the primary sector (especially in pipes), also keeps shining in the recyclates sector with continued strong order volumes.

In June, only the PP homopolymer sector was in the red. Here, trades appear to have been made early in the month and in tune with the respective virgin material. PP copolymer agreements were closed later in the month, leading to premiums. July marks the start of the holiday season. Some recyclers and processors will be closed for weeks or would be performing maintenance. This should bring down prices somewhat.

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 June  2022: Upward trend continues with rPA 6, rPOM / Rollover for rABS, rPC / Forward buying by automotive sector

The price picture remained the same as it was in May, but with decreasing momentum. In June, prices for rABS and rPS again moved sideways while rPA 6, rPA 6.6, and rPOM witnessed further increases. However, the prices for these last three materials rose in most cases to a somewhat lesser extent than in the previous month, and with one or two rPA 6.6 types, there were also a few reports of a rollover.

Supply remained predominantly tight or very tight, particularly as there was a lack of base material almost everywhere. Demand was also fairly subdued, even though the number of orders from the automotive sector increased in some cases. Some players were building up stocks before recyclers halt production in the upcoming holiday season and carry out maintenance turnarounds.

Nothing much is likely to change next month as far as the overall picture is concerned. On the supply side, no short-term improvement is expected, and demand will presumably also decline with the start of the holiday season. Against this background, the general price trend is not expected to change very much either. Nevertheless, the upward momentum is also likely to decline, also for those materials that are still rising. This is particularly the case with products such as rPOM, where the prices have already reached a level where the room for further increases is becoming smaller and smaller.

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!