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

 

 Standard Thermoplastics March 2018: Polyolefins and PVC follow precursors downwards / Markets tending to higher liquidity / PS cost hikes below SM / PET sees slight movements / Quiet April market dampens rising costs

PE: European PE types tended weaker in March with the exception of the HDPE pipe 80 and EVA materials. Especially buyers of large quantities were able to win price cuts higher than the fall in costs. The first imports of LLDPE film grades from the US provided for some significant price reductions in this segment. In April, producers are likely to try to push through the increase in the ethylene reference in full. This venture is unlikely to be very successful in the case of the LDPE and LLDPE film grades, where the markets are showing a tendency to a surplus. With the more seasonally influenced types on the other hand, the speed of the upturn in demand could prove to be the decisive factor.

PP: When the March propylene reference contract was fixed lower, European PP producers dreamed of holding onto their cost advantage and safeguarding their margins. However, their hopes were dashed by their customers’ ordering tactics. In the end, most had to concede all of their cost relief to keep sales volume at a halfway normal level. In the compounds market segment the picture was similar, although here the downward price momentum is more likely to have reflected receding demand ahead of the Easter holidays. As the C3 reference contract for April was fixed EUR 10/t higher, producers hope to be able to price in this slight gain when converters refill inventories after the Easter break. From the current perspective, however, notations are more likely to move sideways. If demand from the end markets does not appear weak, it does not look extremely lively, either. Buyers can order at their leisure. Compounds will move in a similar direction as there is no impetus for any diverging development.

PVC: Europe’s PVC producers had to bury any hopes of substantial margin gains in March after two weeks the latest. The exceptional cold spell curtailed demand. At the same time, previous restrictions on production were largely eliminated, allowing stocks to be built up somewhat. The rigid compounds also followed suit, since titanium dioxide remained calm for once. Plasticiser prices rose unexpectedly, however, with compounders experiencing no problems in passing on the cost increases – thanks to a good level of demand. Brisk demand also allowed PVC pastes suppliers to keep their prices stable at a high level and thus, boost margins. The ethylene reference contract for April has risen slightly, prompting an upward trend. The extra costs, if nothing more, will doubtless be passed on as standard. Margins could also be upped a euro or two depending on the extent of demand, but no major movement is to be expected.

Styrenics: Styrenics prices increased further after the renewed increase in the SM reference contract by EUR 55/t. However, PS suppliers could only transfer the full cost increase at the beginning of the month – later, they had to severely cut back on surcharges in view of an uninterested market. As a result, PIE’s price reports were heterogeneous. The cold snap quickly stifled the demand for EPS so that producers were compelled to make price concessions right at the start of the month. ABS suppliers, on the other hand, could for the most part pass on their increased composite costs. All styrenics were marked by a rather subdued demand. Many processors did not buy more than necessary, as declining SM spot prices inspired them to wait for discounts in April. It now looks as if this will pay off. The SM reference contract for April has decreased by EUR 125/t and styrenics prices are likely to be caught in the maelstrom.

PET: Despite the slight decline in the cost mix, European producers were able to push through moderate price increases for PET. Imports from Asia were almost completely absent, with only quantities produced in Europe on the market. Faltering production in the US following the collapse of M&G diverted many offers to North America. The market thus came dangerously into a state of undersupply. Despite this, sufficient quantities were available overall to meet the demand driven by the first seasonal peak at Easter. The secondary grades, following in the slipstream, also experienced a slight hike midway through the month. In April, momentum will be pulling in different directions attempting to gain the upper hand. The expectations of a moderate cost increase are set against a somewhat calmer demand. Many consumers also feel that imports reached their lowest ebb in March and thus, more quantities from Asia will soon be available again. No major movement is to be expected, whichever development ultimately predominates.

 

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 March 2018: Notations continue to rise but at a slower rate / Quarterly increases factored in / Next round due in April / Greater focus on specified grades

Prices continued to rise on the European markets for engineering thermoplastics in March. In most cases, the remaining slices of the quarterly rises were factored in in the final month of the first quarter. The wild ride of PA 6 at least came to a standstill, and PMMA also remained stable for the second month in a row. In their place, however, POM sprinted rather late out of the starting blocks and endeavoured to make up the gap to the other types. ABS climbed once again as expected as a consequence of the significant rise in the SM reference, while the PP compounds followed the downward drift of the propylene feedstock.

The dramatic bottlenecks with PA 6.6 had a major impact on both supply and demand. Buyers were again searching desperately for alternatives, and were increasingly forced to poach materials from neighbouring territories. This in turn nibbled away at the supply situation and generated nervousness among regular buyers there. As a result, the “nylon sickness” gradually spread over the entire market. In the PMMA segment, there are at last indications of an improvement after many months of drought. Here, it seems that the peak has been reached.

April is likely to see a new round of increases, above all with PA 6.6 and finished grades in many areas. Producers will want to push through some of the significant quarterly increases that many of them have already announced, also in the smaller monthly transactions. At present, the commodity-related ABS and PP compounds are tending downwards to stable.

 

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 March 2018: MDI heading down, TDI firmer, polyols stable / Trends likely to continue / Demand just about satisfactory overall / Slight restrictions on availability / Converters switching to other materials

Isocyanate prices developed unevenly in March. While both MDI types trended downwards, TDI saw a continued upward momentum. Supply and demand were largely balanced for all the products reported on here. Polymeric MDI underwent a pronounced fall in response to the considerable price reduction in the feedstock benzene once again. Pure MDI also crumbled in the wake of its polymeric sister product, although not to such a clear extent.

The range for TDI extended from a rollover to increases of EUR 130/t. An average increase of EUR 65/t resulted. This was prompted not by the feedstock toluene, which has remained more or less stable, but by the continuing slight tightness on the market.

Polyols firmed slightly despite reductions in the feedstocks ethylene and propylene. Producers evidently succeeded in attaining at least part of their margin losses from last year.

Over the coming weeks, further downward movement would seem likely for polymeric MDI in Europe, despite the uptrend in Asia. Benzene rose only marginally at the start of March. In contrast, pure MDI could remain stable.

Recent price increases for TDI in the US and Asia could also provide a boost in Europe. Given that the price level is already high here, increases should remain within clear limits. Depending on the producer/buyer setup, supply is set to be stable to slightly restricted. Easing can probably not be expected before the third quarter.

Most applications are running smoothly and generating a decent level of order activity. In the case of applications for the two isocyanates, however, the higher prices are having an initial impact. Numerous buyers have turned to less expensive materials, with insulating materials, for example, being particularly hard hit by comparison.

 

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 March 2018: Resin and glass fibre prices mostly unchanged / Demand trending upward / Resins could see slight decline in April

Ortho resins prices remained stable in March, despite the fresh rise in the styrene reference contract. Producers had their sights set on Q2, when the quarterly contracts come up for negotiation. Demand from all customer markets was brisk. Even with the many holidays that dot the European calendar in spring, a rise in order activity can be expected.

Glass fibre notations were mostly unchanged in March, as the quarterly contract still had a month to run. All in all, supply is currently adequate and the influx of imports minimal. Hardly any low-priced material is in the market. Here and there, lively demand for sheet with a class A surface boosted orders for the associated chopped strand mats last month. Buyers of direct roving could sometimes find a slightly better deal on the spot market.

At the beginning of April, the styrene reference contract dipped by EUR 125/t. This means that after the recent surge, notations for ortho resins will probably remain stable. While it is also possible that prices could weaken, any decline is likely to be minimal. Spot market movements suggest that maleic acid anhydride may well trend firmer again, due to the market's tightness. Phthalic acid anhydride rose minimally, by EUR 5/t, in March.

 

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 March 2018: Stable to solidifying market / Exception is rLDPE film grades / Demand from China supports hikes

As expected, recyclate prices lately have been trending horizontally or even upwards. Many segments are backed by volume calls from China and rising seasonal demand. Recycled PET grades especially saw hefty hikes due to a bottleneck on the primary market. The only exception to the uptrend were pure grades of natural-coloured rLDPE film, which were under pressure from low-cost primary materials.

Across the board, March will provide ample opportunity for further increases on standard recyclates. Ongoing volume calls from China and increasing seasonal effects leave no leeway for reductions on most secondary materials.

 

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 March 2018: Respite for price rises / rPA 6.6 and rPOM nevertheless on the up / rABS and rPA 6 rather quiet

Unlike the primary market, notations for engineering recyclate remained mostly calm from mid-February to mid-March. With many types, however, there had been rises in the previous weeks. To a certain extent, it almost seemed like a temporary respite. Base material generally remained tight and expensive, so that secondary suppliers often had to accept margin losses. The situation with rPA 6.6 was still very tense. Secondary products were not unaffected by the dramas on the primary market, but with recycled POM, there were, surprisingly, reports of price hikes.

For these two materials, prices are likely to continue rising in the coming weeks, and the tendency with all rPC compounds and blends is also on the up again. With ABS and PA 6 recyclate, on the other hand, buyers will for the time being block any further movement as most of them feel the high level really is the limit. Furthermore, there are signs on the primary markets that the tension is easing with these products, and this is giving buyers added backing.

 

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!