Price Reports March 2024

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 March 2024: Most prices rise above monomer markups / Imports improve supply, make the market long / Demand remains low for all grades

PE: The EUR 30/t rise of the C2 contract in March led to most prices rising by significantly more than the monomer. The month presented a picture of two halves – in the first half, producers dominated the scene and were mostly able to push through the price increases they wanted. The further March progressed, however, the more the pendulum swung to the side of the converters with the result that, towards the end of the month, the remaining agreements did no more than pass on the extra costs. For April, an increasing volume of imports is expected to arrive in Europe. This may well lead to a situation in which converters can benefit from additional sources of supply. For this reason, the price increases are likely to decline to merely passing on the EUR 40/t rise of the cost of the monomer. It would then be right to say that the price rally that began in February would probably have come to an end.

PP: That the propylene contract closed at a plus of 35 EUR/t was an initial indication of further price increases for the polymer. In view of the tight supply situation, agreements in the first half of the month were often concluded with additional margin shares. However, the demands of producers for triple-digit price increases could not be accommodated on the market. The supply situation is expected to improve in the coming weeks, thanks to imports from Asia. Demand, however, is likely to remain at the previous month’s level. There even appears to be a slight decline in film types, as some companies are starting April late or with reduced production due to the Easter holidays. Nevertheless, compounders are expected to do everything in their power to stop the gradual erosion of their margins. The increase of the propylene reference price for April by EUR 45/t is the third uptick in a row. As the market is likely to return to a clearly balanced situation, the contract could also serve as a guideline for polymer prices in most cases.

PVC: Once again, it was the feedstock that set the direction. The EUR 30/t increase in the ethylene contract formed the basis for a large number of transactions, and negotiations concluded with producers and converters agreeing on a pro-rata share of the costs being passed on. The demands voiced at the start of the month – for significantly higher increases of up to EUR 70/t – proved impossible to achieve on the market. Even though demand from the construction sector in particular picked up slightly, call-offs were still below the customary level for the time of year. One exception in Europe was the Polish market where a special economic situation is emerging – triggered by additional EU subsidies for housing construction. Building interest rates, which have almost halved in Poland compared with the previous year, are also an incentive to invest. Apart from the development of the ethylene contract, there are unlikely to be any arguments for pushing through major hikes in April. With a sufficient supply situation on the market, increases, if any, should be in the range of the pro-rata C2 costs. Prices should therefore firm.

Styrenics: In March, the cost of styrene skyrocketed once more – the reference contract shot up by EUR 222/t – fuelling another price hike for polystyrene, EPS, and ABS. In the case of polystyrene, the price hikes often reached the full extent of the monomer price increase or were only just below it, while the premiums on EPS were only slightly lower. ABS prices also increased sharply, as suppliers usually demanded a full transfer of the composite costs, which had risen by around EUR 150/t. In some cases, and particularly for extrusion materials, they even added a slight margin component. The already-weak demand was further dampened by the hefty price increases. Processors are trying to ride out the current bull market and are ordering only essential volumes. However, they will probably have to weather the situation for April – the SM reference has increased again at the start of Q2, even if “only” by EUR 44/t. Processors are now hoping for a trend reversal in May.

PET: The European PET market went through two distinct phases in March 2024. Early transactions were fixed at a rollover in most cases. When it became apparent that many of the announced imports had been held up by the ongoing, tense situation off the Horn of Africa, European producers hiked their demands sharply, citing increased feedstock costs. Although the PX contract remained well below expectations, increasing by only EUR 5/t, producers did manage to push through average increases of EUR 30/t to 40/t. However, business remained at a rather low level in terms of volume. The slump in demand from the application markets continued, and hence, converters were able to restrict their granule purchases to what was absolutely necessary. Producers intend to increase prices further in April. In view of the import volumes that have now been announced for the start of the month, however, and the fact that demand is still at a weak level, a rollover seems likely, with slight increases at most. Given the poor consumer mood, the outlook for spring looks rather shaky.

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 2024: Re-imports push their way onto the market / Demand remains weak especially from automotive

So as not to drown in a surplus of material last year, a number of producers sought their salvation by exporting it. However, it has now become evident that problems in selling cannot be overcome simply by shifting them elsewhere. At present, an increasing volume of re-imports of previously exported goods are pushing their way back onto the local market and creating additional price pressure. This led to a situation in which producers’ asking prices were either capped completely or at least reduced to a minimum. Only smaller converters were unable to defend themselves against this, but the larger ones simply ignored producers’ calls for higher prices.

The benzene contract rose, as in the previous month, by exactly EUR 214/t. The compounding lines in Europe are running as before with reduced output, and more imports also arrived here with a certain delay. Together, this has resulted in a liquid market. Demand, above all from car production, continued to be very weak. Only the premium segment ordered with a relative amount of stability, but at a low level. Only few stock-building activities were observed.

The benzene contract for April was fixed EUR 37/t higher. The renewed calls by producers for triple-digit increases, however, are likely to once again be heavily affected by imports from Asia and by re-imports, in particular. Demand is expected to remain weak, as in the previous months.

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 2024: Prices continue to rise / Higher markups, especially for MDI

In March 2024, prices for MDI, TDI, and polyols rose again. This was because supply had been reduced and producers took advantage of the opportunity. Demand from almost all purchasing segments remained weak, with only the gardening sector showing any signs of movement.

Demand for April also lacks any significant momentum. Market players are hoping for slightly higher demand from the automotive industry, but more than a gradual increase at best is not to be expected here, either. Meanwhile, supply remains limited. Little change is therefore expected in the situation in the coming weeks, but producers will likely have room for upward pressure on prices. 

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 2024: No momentum in sight around Easter / Rising resin prices could dampen demand in April / Glass fibre producers dispirited by cheap material from the Far East

Resin prices, especially those that had been at a very low level, were pulled up significantly in March. Quotations went up overall in response to the soaring cost of feedstocks. Not only styrene, but also maleic anhydride and other input materials reached twelve-month highs. The increased prices further dampened the already weak level of demand. What little momentum there was in late February and early March was quickly lost again as the holiday season approached.

The upward trend for resins looks set to continue in April – driven in particular by more expensive feedstocks and also by an expected and hoped-for upturn in demand following the Easter holidays. In the case of styrene, the pronounced upward movement is beginning to slow. Maleic and phthalic anhydride, by contrast, are continuing to firm. Plant outages are a contributory factor here – a large plant in Maasvlakte is at a standstill, causing spot prices to rise. Two unplanned outages have also been recorded for maleic anhydride. This difficult situation is driving up resin prices, which in turn will undoubtedly further dampen demand.

In the glass fibre sector, another producer has now publicly warned of the consequences for the European industry if the hikes it deems necessary cannot be achieved. The recently voiced demands for an average increase of 5-15% – depending on type – have now been upped to between 15% and 20%. It is likely to prove more than difficult for producers to get even half of this percentage from converters.

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 2024: Prices continue to trend upwards / More expensive virgin material increases attractiveness of recycled grades

European recyclers were able to enforce higher prices for almost all standard recyclates in March 2024. Once more, they took advantage of the ongoing rise in virgin material quotations, as this caused several processors to switch to recycled alternatives. Some secondary materials additionally benefited from seasonal effects, at least to a certain extent. Demand generally remained below what one would consider normal levels, however. Recyclers therefore continued to tread carefully with regard to their output volumes.

The general conditions are unlikely to change much in the weeks to come – the high price level of virgin grades will likely continue to make recyclates more attractive. In conjunction with a slight upturn in demand due to seasonal effects, this is giving recyclers fresh tailwind for price hikes. They are anticipated to put it to good use to pass on some of their increased costs at the turn of the quarter.

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 2024: Market lacks sufficient fundamental impulses for an upturn / Converters' poor order book situation puts pressure on demand / Longer Easter breaks planned

For producers and converters alike, the month of March is regarded as a lost cause. Many PIE panellists complained that the market was lacking basic impulses. The fact that many converters have since removed some recyclate types (such as PA 6.6) entirely from their portfolio and plan to substitute them is not making the situation any easier for all involved.

On top of that, converters’ order book situation is still very weak because customer industries everywhere simply cannot get going. This is leading to a situation in which some converters have already announced that they will send the workforce off on a prolonged Easter break. Although nothing of the like has been heard from recycling companies, it is not surprising because their production lines have to a large extent already been cut back to minimum output for some time now anyway.

Only some speciality grades could see at least minor improvements in the beginning of the new quarter. After all, numerous three-month contracts are running out and must be renegotiated. Producers will certainly try to take advantage of this.

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!