Price Reports March 2019

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!

Articles: March 2019
Standards Thermoplastics Engineering thermoplastics Polyurethane Feedstocks	Composites/GRP Standard Recyclate Engineering Recyclate

 

 

 Standard Thermoplastics March 2019: Passing on of cost increase not always successful / Slack demand slows uptrend / Shorter supply in April during maintenance season / Increases on the horizon

PE: European PE producers had unfulfilled hopes of a margin increase in March. Nevertheless, by passing on most of the cost increase, they generally succeeded in keeping naphtha-based margins stable. In many segments, supply has tended to deteriorate, as the special offers and many imports that were around in previous months were no longer to be seen. One reason for this was the stocking up by some producers ahead of maintenance turnarounds scheduled later in the spring. Demand remained subdued – apart from the regular orders – so that in the end, the market seemed balanced. The picture could change in April. The C2 reference rose by EUR 30/t, and producers are aiming to recoup this, plus "a bit more." Demand is expected to pick up because some converters are starting to run out of stocks, and there are positive signs as far as the economic situation is concerned. Supply is tending somewhat short again and producers could well succeed in winning at least a small margin increase.

PP: As expected, producers' hopes of pushing through hikes of EUR 25/t above the rise in the C2 reference contract were dashed. Demand was simply too soft. For buyers paying low prices, supply remained firm and at minimum the higher cost managed to be passed on. Where buyers were already paying more, the increases fell short of even that. In the compound segment, the increase in the C3 reference price pushed indexed PP compounds forward a notch. In contracts tied to standard PP, the rise was not as steep. The C3 reference price for April added another EUR 20/t, and producers are bent on implementing hikes to restore margins. Production levels are relatively low. For compounds, the C3 reference increase is not enough to trigger changes in contracts indexed to C3. With compounds, contracts oriented around standard PP will see at least moderate upward movement.

PVC: The endeavours of Europe's PVC suppliers to improve margins in March 2019 after a long and tedious time came to nothing. For the basic grades, supply and demand still remained too balanced to pass on more than the proportionate increase in the C2 reference. For rigid PVC mixtures, the share accounted for by the PVC matrix was priced in, since titanium dioxide trended stable. Flexible compounds gave way slightly, since plasticiser prices continued to fall. Subdued demand for paste PVC put the brakes on significant hikes. The C2 reference for April rose by EUR 30/t, and there seems to be scope for PVC producers to increase margins. Planned and unplanned supply shortages, along with stable demand, could serve to drive up prices. This trend could affect all the various PVC grades and qualities.

Styrenics: In April 2019, styrenics prices continued an uptrend in the slipstream of the SM reference, which rose by EUR 60/t. Most hikes on EPS did not reach the full amount of the cost increase. For PS, many suppliers were able to raise prices above and beyond the SM change at the beginning of the month. After that, some players demanded only moderate hikes in order to promote sales. In view of the price increases, several processors started to cover at least part of their needs from the stocks they built up in the previous months. For April, however, they will have to expect further price increases, as the SM reference price rose again by an almost three-digit amount at the start of the second quarter.

PET: February's rollover was not on firm footing and in March, the European PET notations tended somewhat firmer due to the rising PX reference. Continued subdued demand was the key factor in ensuring stability for medium to large volumes, while very small orders often had to part with the small discount that had been achieved in February again. Since import prices also rose, the alternatives were lacking. On the whole, suppliers' hopes of at least passing on the costs were well and truly dashed. April will see latent upward momentum. Prices in Asia are rising, and at least moderate cost increases appear to be possible in Europe. If demand picks up sufficiently, commensurate with the season, increases could be on the cards.

 

 

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 March 2019: Polyamide notations slide / Otherwise prices remain stable in final month of quarter / Demand still weak / Price cuts to be expected in April

In the final month of Q1, the European market for engineering thermoplastics stayed relatively stable. In many cases, the quarterly reductions had already been factored in. At any rate, demand was hardly able to carry the notations as they were. In particular, the slump in the automotive segment has now led to significant falls with PA 6. Only the commodity-related ABS (see PIEWeb of 03.04.2019) and PP compounds increased slightly. PA 6.6 was stabilised by the quarterly agreements in the same way as PBT, POM and PMMA. In the case of polycarbonate, on the other hand, the production cutbacks in particular gradually took effect.

In April, prices could decline further in many segments. Automotive is still trudging along, and the upcoming Easter holidays will further dampen demand. As a result, the record notations for PA 6.6 really do seem to be wobbling for the first time in a long time. The sellers' market is about to turn around. After the long lean spell, buyers are unlikely to forego the pleasure of falling prices. In parallel, PA 6 seems likely to slip, and with PBT, POM and PMMA, the stabilisation screws in place at the beginning of Q2 are not quite as tight as they were before. Here, there could also be some considerable corrections. PC, after the significant reductions of the previous quarters, may well remain stable. On the other hand, the commodity related materials ABS and PP compounds are on the up because of cost increases.

 

 

 

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 March 2019: Polymeric MDI bottoms out / Pure MDI and TDI plunge / Weak automotive to add pressure in April

After polymeric MDI reached its lowest level since the end of 2018, the downswing appears to have bottomed out. Despite a slight oversupply tendency in Europe, notations firmed slightly, thanks in part to the EUR 61/t rise in the benzene contract. In contrast, prices for pure MDI – which has been somewhat tight recently – plunged, as did TDI prices, the latter in reaction to continued very soft automotive demand. On the whole, demand from other branches of industry was largely in line with the season.

April could see a slight firming of the upward trend for polymeric MDI. To a major extent, this will depend on an upswing in orders from automotive customers, who of late have been mostly shortening forecasts. For TDI, the downward momentum is likely to continue. Market talk has it that TDI foam is being substituted by cheaper MDI foam in some applications. This only serves to weaken demand for TDI further and puts more downward pressure on notations.

 

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 March 2019: Ortho resins lose ground despite higher styrene / Weak automotive economy curbs demand / Improvement in sight

Somewhat surprisingly, ortho resins prices in Western Europe lost momentum in March and, on average, pointed farther downward. This was despite the higher fixing of the styrene monomer contract at the beginning of the month. The weaker automotive economy, which meanwhile also has utility vehicles in its grip, is having a bigger impact than had been expected. In particular specialities at the upper end of the PIE range gave up ground, while the lower end was less affected. Notations for glass fibre products saw little movement.

The April SM reference contract shot up by EUR 97.50/t against March, and phthalic anhydride added EUR 35/t. Depending on the size of the order and the price previously paid, ortho resins buyers could pay up to EUR 30/t more in April, though the continued weak demand could well brake the upward price trend.

Orders from the automotive sector may be corrected downward in the coming weeks, especially as the pre-Brexit topping-up effect has run its course. Many buyers will sit it out to see how OEM demand develops before opening order books, however. Some may end up ordering less than they will need.

 

 

 

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 March 2019: Prices largely remain at previous month's level / Only small hikes on individual grades

In March 2019, recyclate notations showed next to no change. Only for the grades rLDPE film natural, rHDPE blow moulding and rPP homo black, did prices increase slightly, compensating for last month’s moderate decreases. Calls for further price hikes remained unanswered, especially as the carnival season reduced demand in many regions.

However, recyclers intend to catch up on the missed increases sooner or later. They are supported by higher costs for feedstock, wages, energy, transport and waste disposal. In spring, there is the additional factor of rising seasonal demand.

 

 

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 March 2019: Weak volume calls from automotive industry depress prices / Some discounts in April

Automotive engineering is in a depressive, if not outright doomsday mood. The majority of the recyclate grades reported here slumped in March, mainly because numerous suppliers restricted or cancelled their orders. Notable exceptions were the undersupplied rPA 6.6 as well as rPOM, the latter being less focused on the automotive industry. Demand from other sectors, such as construction and E&E, could not compensate for the decline in the automotive sector.

While the downturn in rABS can be attributed to an abundant inflow of primary materials from Asia, the discount on rPA 6 increasingly established itself across the board. Just as with rABS, there are copious amounts of cheap primary materials on the market.

In April, further discounts in reaction to a continuing weak demand are expected. Only with rPOM will the supply in production scrap remain limited and expensive, and keep recyclate notations high. Upcoming cracker maintenance should provide a boost to feedstock material prices, such as for benzene, and continued support for virgin PA 6.6 prices. If this effect is reflected in production scrap prices, continued stability is likely. PA 6, on the other hand, could maintain its downtrend, as could recycled PC. The spring holidays in April will limit output somewhat, but recyclers will probably not be too upset about this. Demand is expected to remain weak since there are no signs of improvement in the automotive industry. To the contrary, further deterioration seems likely.

 

 

 

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!