Price Reports March 2025

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 2025: Producers meet with little favour with their mark-up demands / Demand remains at low level / Processors plan to shut down production over Easter period

PE: In March once again, producers called for significant price hikes that far exceeded the small rise of EUR 2.5/t in the ethylene contract. In view of the subdued order-book situation, however, this met with considerable resistance among converters. During the rest of the month, the heavy reluctance to buy inevitably reduced the size of the increases. Because of maintenance turnarounds and production cutbacks, the output from European plants was not very high. Also, the volume of imports was fairly modest, but was sufficient to ensure adequate supply at all times. In addition, there was a complete lack of impulses to enliven converters’ order books. There was, however, at least a certain amount of business still going on in the packaging industry. Because of the price policy, and in expectation of falling prices, some converters fell back on their stocks, thus keeping call-offs at a low level. For April, the cost of ethylene has dropped significantly – by EUR 55/t – which will naturally put pressure on PE prices. Producers are, however, likely to do everything they can to hang on to a large part of the cost reduction. Should retaliatory tariffs be imposed by the EU on PE imports from the US, April could be divided into two halves – if so, prices in the second half of the month are expected to pick up again. There is sufficient material available on the market to fulfil contracts. Demand is again expected to be slow at the beginning of the second quarter. Some companies are therefore planning to take advantage of the Easter period and shut shop for a few days.

PP: Although the C3 contract rose at least slightly by EUR 7.5/t in March, European polypropylene production remained throttled and fewer import volumes arrived. As a result, producers were unable to push through their demands for mark-ups. In the end, the result was often even a rollover. Only a few processors were prepared to pay mark-ups at all, and only slight ones at that. Demand was simply too low for a real plus to be possible. The decision to close LyondellBasell’s polypropylene plant in Brindisi in Italy did nothing to change the still sufficient supply situation. One reason for the sluggish market is the slump in the automotive sector. The sector is one of the largest customer industries for polypropylene. However, purchasing figures have been poor for several months. The result is that among suppliers, one insolvency is following the next. The fact that the US is now also imposing punitive tariffs of 25% on EU imports is likely to put a further damper on production and further exacerbate the crisis among European carmakers and their suppliers. Demand for polypropylene is also expected to suffer as a result. Prices will therefore likely encounter noticeable pressure in April. The C3 contract price also fell significantly, by EUR 55/t. And – as if that wasn’t bad enough – the public holidays mean that orders are projected lower across the board.

PVC: Even before the first working day of March, one producer had announced that it was going to increase PVC prices by EUR 60/t, citing higher energy costs. This sent out a signal and other suppliers followed suit, asking for similar double-digit hikes on the market. After the first third of the month, however, it became clear that hoped-for price rises of this order of magnitude were not feasible. This did not, however, prevent prices from rising across all the different grades – at a level considerably above the EUR 2.5/t increase for ethylene. Several events combined to bring the market to a balance not seen for a long time. A number of grades were even described as “scarce” or “poorly available”. Apart from maintenance shutdowns, problems in feedstock production and an unplanned plant outage also contributed to the low supply. The ethylene contract for April is trending noticeably lower, down EUR 55/t to EUR 1,205/t. In addition, many converters are also experiencing a shortage of orders and are expected to take advantage of Easter holidays to shut down operations. While producers continue to stress that they require clear improvements in their margins to achieve cost-efficient production in Europe, this might not save them from having to make concessions. PVC prices would seem to be changing direction again, with slight price reductions on the cards.

Styrenics: The situation in March 2025 is similar to February – polystyrene and ABS producers have largely accounted for the increased costs in their prices. However, attempts to charge higher premiums have been unsuccessful due to weak demand, while price reductions were not possible because of producers’ tight margins. EPS producers fared slightly better, as some manufacturers without backward integration faced higher spot market costs for styrene and insisted on passing those costs on through price increases. Several other EPS producers took advantage of this to bolster their emaciated margins. As a result, premiums for polystyrene mostly ended up at EUR 70/t, those for ABS ranged between EUR 45/t and EUR 50/t, and EPS premiums mostly were between EUR 90/t and EUR 120/t, with packaging materials more at the bottom of the price range and EPS insulation materials more at the top. However, the picture will be different in April. Demand will remain weak, but prices will be declining. Once again, the costs will set the trend – styrene became more affordable by EUR 58/t at the start of the second quarter, butadiene by EUR 20/t and the ABS cost component ACN by as much as EUR 92/t. Suppliers will once again try to keep a share of the cost reductions. This is unlikely to find much favour with the processors, many of whom are also trying to cope with thinned-out margins.

PET: Although expectations of the European PET market for the seasonal transition-month of March were not exactly high, they were still not met. Demand was extremely subdued and converters only bought what was absolutely necessary, at the lower limit of the volumes specified in their respective contracts. Great uncertainty still prevailed regarding potential sales in light of consumers’ loss of purchasing power and the general global situation. The stocking up of inventories that normally takes place at this point in the season was thus virtually non-existent. On the supply side, increasing imports from East Asia flowed into the market at the same time, with attractive FD offers. Once the PX reference, down by EUR 70/t, cancelled out the increases of the previous two months again, the low level of European production was of little use in regulating the market. PET prices inevitably fell, even if only by a moderate amount. Disillusionment is set to prevail on all sides in April. While there will doubtless be several purchases, given that the season is starting, these will expectedly be at a very low level. At most, another unforeseeable interruption of the delivery routes from Asia could lead to a slight tightening on the supply side. Since the warehouses are full, however, no serious shortages are likely. All in all, the most probable scenario is renewed price reductions on a par with those of March.

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.ki.de and sign up for a 48-hour free trial!

  Engineering thermoplastics March 2025: Quarterly contracts, imports fade producers' calls for increases / Demand still weak / No improvement likely in April

Once again, converters were able, for the most part, to fend off the price hikes called for by producers. This was accompanied by the stabilising effect exerted by quarterly contracts. European plants are still producing with reduced output. Imports arrived on the market in considerable quantities.

Most converters bought only what they absolutely needed, and only those who were positively inclined took advantage of the opportunity and built up stocks. Overall, demand remained at a low level across most grades.

With the new quarter, producers might be able to push their price demands to a greater extent than of late. However, they might not be fully successful because many converters are banking on imports. Demand is unlikely to spring to life because of Easter holidays, and some companies have already announced that they will shut production for a week’s holiday around Easter. April is thus likely to be another weak month.

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.ki.de and sign up for a 48-hour free trial!

 Polyurethane feedstocks March 2025: Processors successfully fend off demands for price hikes / Availability high, demand low / Harsh tone criticised

In the case of isocyanates, the price increases announced by producers were often not accepted by processors – demand was too weak and material availability too high. Nearly all processors continued to report meagre, and in some cases, even disastrously low ordering activity from their customer industries. Producers also intend to receive more money for their material in April. However, as there is little prospect of an increase in demand, prices are only likely to rise slightly.

In the case of polyols, the force majeure at Shell, supply problems at Repsol and Covestro, and limited imports, paved the way for significant price increases. The price of standard materials rose by triple digits. Speciality polyols had to accept mark-ups in the mid-double-digit range. Despite all the limitations, whether feigned or not, there was ultimately enough material available on the market. Processors were often caught up in the hectic pace of the market and in some cases ordered significantly more than required, to be on the safe side. As some processors now have well-stocked warehouses, they can sit out overly brash demands from producers. At the same time, imports from Asia at competitive prices are set to increase. Demand remains weak.

One thing stands out in the conversations with the PIE panel – the more opaque the polyol market becomes, the harsher the tone grows. A number of panellists complained that the partnership-based cooperation that had been practised to date had been lost.

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.ki.de and sign up for a 48-hour free trial!

  Composites/GRP March 2025: Styrene reduction could push resin prices down in April / Virtually no movement in glass fibre

Despite the renewed upward trend for the main feedstock of styrene in March, the price increase was not passed on to the resin chain, as had previously been the case. Demand from the conversion industry was too weak for further increases. Instead, slight reductions were seen for resins in some cases.

This trend could intensify in April, given that the styrene contract went down noticeably at the start of the month by EUR 58/t. The unchanged prices for maleic and phthalic anhydride will have a slightly stabilising influence at most.

Demand from all customer industries was still subdued. Stock replenishments were non-existent or only carried out on a very limited scale. Most market participants were more inclined to wait for resin prices to fall. No notable pickup on the demand side is in sight for the next few weeks. If resin prices fall again, as expected, it could prompt some restocking tendencies here and there – despite the shorter working month with its public holidays.

Virtually no movement came about in glass fibre products. Only transactions for high-end chopped strand mats were concluded slightly lower in some cases on account of the weak state of the automotive industry.  These marginal movements had no impact on the average price, however. The industry has settled in at a low level, with a more or less balanced market. No essential changes are to be expected unless a notable upturn is seen in customer industries.

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.ki.de and sign up for a 48-hour free trial!

 Standard recyclate March 2025: Prices trending up / Supply, demand largely unchanged / Will the PRSE trade fair bring a turnaround?

In March 2025, prices for high-quality film grades increased to their highest level in almost two years. This was due to expensive input material, reduced market availability for virgin material, and a slight improvement in demand at the beginning of spring. The output of production lines still did not reach normal levels, even though recyclers improved their plants’ utilisation again. Volume calls improved slightly over the previous month but have not yet reached normal levels. Packaging applications in particular drew volumes.

However, the rally is likely to lose momentum in the coming month. Competition from low-cost virgin-material imports makes further significant price increases unlikely. No shortage of material is expected in April, even if recycling lines in many places run at a reduced speed. Processors’ order books are mirroring the lack of stimuli.

Across all grades, processors are taking a rather doubtful look at their order intake. Incoming orders are not reflecting the beginning of spring season. A number of processors have therefore announced that they will be closing their businesses over the Easter holidays. It is doubtful that this low mood dissipates by the start of European recycling trade fair PRSE in Amsterdam – the current outlook seems too uncertain for recyclers.

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.ki.de and sign up for a 48-hour free trial!

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.ki.de and sign up for a 48-hour free trial!

 Engineering recyclate March 2025: Downward trend provisionally halted / Demand still weak / Plastics Recycling Show (PRSE) in Amsterdam could provide stimulus

Although more material flowed from Asia into Europe, despite demand just bobbing along, recyclers were in most cases able to keep prices stable. Only less specified grades saw price reductions yet again. PC recyclate was a special case because, despite weak demand, producers were able not only to stop the downward trend, but also to turn it around. The PIE price panel reported changes ranging from minus EUR 10/t to plus EUR 30/t. Across most grades (with the exception of PA 6.6 natural), base material was still abundantly available, so contracts could be fulfilled at all times. There was, above all, a lack of orders from car production. The E&E and construction industries were unable to make up this deficit.

At the beginning of Q2, most secondary materials should remain stable. A spring revival that is true to its name is still not in sight. The bank holidays in April are expected to restrict output to a certain extent. Recyclate producers are not, however, expected to be angry about that because it is unlikely then that their stocks continue to grow. As there are no signs of improvement in car production, demand will almost certainly remain weak. Perhaps the Plastics Recycling Show Europe (PRSE) in Amsterdam will help to create a sense of revival. At present, however, converters’ order books still have a lot of empty pages for new orders.

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.ki.de and sign up for a 48-hour free trial!