Price Reports May 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 May 2024: Availability on the market is good as demand remains weak / Another slump in prices expected in June / Will EU soon decide on punitive tariffs on PVC imports from Egypt, the US?

PE: The first price reduction of the year for the ethylene monomer (down EUR 10/t) turned out in many negotiations in May to be “incidental”, because overall supply was too high and demand too weak. Polymer prices dropped by much more than the fall in the cost of the monomer. Attempts by producers to counter this proved worthless because, even if European plants were producing with heavily reduced output, imports kept the supply situation stable. Across all types, more material was available than was needed to fulfil the contracts. At the same time, there was a lack of stimulus from customer industries. For this reason, most converters bought only what they absolutely needed and speculated on further dropping prices. The starting point for many negotiations in June is likely to be the renewed fall in the cost of ethylene (down EUR 30/t). The market is still expected to have more material available than is needed. Only the supply of individual speciality types is subject to a certain delay, and, even if the higher number of production days than in the previous month should see demand pick up a bit, it will not reach a normal level. For July, there are signs of a special constellation – because the freight rates for the transport of containers from China to Europe are currently climbing, observers expect import volumes to decline, or for supplies to come to a complete halt. Two major suppliers have already announced this. It should mean that the market for individual types will become balanced again towards the end of July. 

PP: The propylene contract turned downwards in May and fell EUR 10/t. Polymer prices followed the downward trend. However, as the market was oversupplied despite all the efforts of European producers to keep availability tight, processors were able to achieve significantly larger discounts. The strong influx of imported material also noticeably augmented the market. Beyond this, the lull in demand continued: above all, the consumer and packaging sectors were weak. The short production month with its many public holidays and associated extended weekends took care of the rest. The C3 reference contract for June fell again (down by EUR 30/t). This will maintain the pressure on polymer prices and cause them to trend downwards further. On the supply side, there continues to be no expectation of difficulty – especially since the order lead time of many companies is not yet sufficient to cope well with the long production month. 

PVC: The upward trend of the two previous months has ended. PVC quotations trended lower in May, aided by the ethylene contract, which declined EUR 10/t compared with April. Processors were in part able to gain more extensive price cuts, among other things due to the still-sluggish order situation in construction. In June, prices could stabilise at the level of half the decrease of the ethylene contract, which was fixed EUR 30/t lower. While players in the new building sector still describe demand as weak, other customer segments are giving off positive impulses. These include pharmaceutical packaging and building renovation. The current situation in Mexico is unlikely to have much of an impact on supply in Europe in June. Imports from the Far East are meanwhile declining again, not least due to the high freight costs. Knock-on effect of the alternate shipping route – Turkey is coming to the fore again as an export market. European supply is overall not expected to be in danger. There is currently no news from Brussels; the European Commission is still investigating the alleged dumping prices and the possibility of punitive tariffs on PVC imports from the US and Egypt. Should such tariffs be implemented, the EU commission would have to publicise its measures by mid-June. Experts are holding back with their prognosis.

Styrenics: In May 2024, declining feedstock costs ended the three month long upwards trend in styrenics prices. However, quotations generally did not erode as much as the styrene reference (down EUR 111/t), as suppliers were able to retain part of the cost reductions, particularly in the first half of the month. In the second half, however, discounts increasingly approached the full styrene decrease. In some cases, the prices were fixed even lower. The picture was similar for ABS: the overall decline in composite costs (SM down EUR 111/t, butadiene up EUR 45/t, ACN down EUR 4/t) set the course for decreases, which for ABS extrusion materials correspondingly landed between EUR 50/t and EUR 70/t with a certain degree of variance. In contrast, the price reductions for ABS injection moulding grades and coloured ABS materials were often somewhat less extensive because both imports and distributors who had not fully transferred the previous price increases had a moderating influence. Styrenics prices are expected to trend down further in June, as the styrene reference declined once more in the final month of Q2 (down EUR 30/t), and weak demand will probably prompt processors to push for slight discounts. For ABS, meanwhile, it could come down to rollover or minimal discounts, as the composite costs (SM down EUR 30/t; butadiene up EUR 25/t; ACN down EUR 40/t) declined to a similarly modest extent (down EUR 15/t).

PET: There was hardly any change in the situation on the European PET market in May compared to the previous month. The controversial and subsequently announced surcharge of EUR 38/t for precursor paraxylene in April was reversed in May. As a result, PX costs have remained largely stable with slight fluctuations since the beginning of the year. Imports remained unattractive, both in terms of price and, above all, security of supply. On the other hand, the plants of European suppliers ran largely trouble free and at a good level. Output was more than sufficient to cover the renewed, rather disappointing demand. Hopes for the upcoming events in Europe, the European Football Championships and the Olympics, have not yet materialised. As a result, the rollover remained largely unchanged. There were only marginal increases in smaller quality purchases. Even the upcoming events no longer offer any great hopes. For better or worse, market participants are slowly coming to terms with the slack conditions. Therefore, not much movement can be expected in June.

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 May 2024: Market too well-balanced for escapades with most types / Downward pressure again expected for June / Only PMMA producers demand increases

Despite the heavy fall of EUR 151/t in the European benzene contract for May, producers managed to achieve a rollover for PC. Apart from that, the final acceptance of orders by plastics group Trinseo, which intends to close its plant in Stade in northern Germany in October, also helped to prevent prices from slipping. Despite the continuing cutbacks in European production and a significant reduction in the arrival of imports, there was still enough material on the market and stocks were generally well-filled. Automotive production provided for a small increase in demand, but converters’ stock-building activities were far fewer than expected. 

For PA 6 and PA 6.6, the times of significant price increases are evidently over. The market is too well-balanced for escapades. Producers tried for a long time to keep prices stable, but from the second half of the month, they had to grant at least small reductions in order to be able to sell any material at all. This downward pressure is likely to remain despite the balanced market, but a major slump in prices is not expected.

Only PMMA and PBT witnessed a rise in quotations. This is likely to continue as the global supply situation with PMMA is poor and there is no improvement in sight. The conflict situation on the market, with the mix of European production and imports, was so complicated that it played into the hands of producers and helped to keep prices up. The scarcity of feedstock MMA and the still short supply of imports will lead to a situation in which the European producers can afford a certain level of confidence and will try to lift prices up 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!

 Polyurethane feedstocks May 2024: Upward trend for MDI halts / Demand remains below expectations / Oversupply set to put further pressure on prices

The European benzene contract fell by a whopping EUR 151/t in May. Despite continued weak demand, MDI producers hardly had to pass any of this on. Availability on the European market improved noticeably. Although normal levels have not yet been reached, the volumes were sufficient to fulfil contracts without delay. In the coming weeks, processors are expected to push for more significant price reductions, and it appears they could succeed.

For TDI, meanwhile, supply noticeably exceeded demand, which was also reflected in the price structure. One processor even described the market as “structurally oversupplied”. As special deals continue to be offered, discounts are likely to be an important topic in the upcoming contract discussions. Here, too, price reductions on a significant scale already seem to be inevitable. 

Overall, demand will likely remain below expectations towards the end of the second quarter – although trends towards recovery have recently prevailed. The automotive industry and the construction sector picked up somewhat, albeit without reaching normal levels. Given the weak order situation, some processors will use the low number of working days in May for shutdowns.

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 May 2024: Drop in feedstock costs can only slow uptrend for resin prices / Glass fibre imports arrive with delay

Despite a clearly liquid market for resins and a further fall in demand due to the public holidays, producers were still able to push through considerable hikes. Sufficient imports and the fact that European production was no longer so severely curtailed meant that demand could be readily met at all times. 

With the many public holidays in May, however, virtually no movement came about in demand. Many processors had already stocked up sufficiently in April and hardly needed to purchase any more material over the past few weeks. All in all, the industry will have to do without its usual spring upturn this year. Only the month of June with its greater number of working days could provide some relief. No actual increase in demand is in sight. 

In the meantime, the styrene contract has slumped again – this time by EUR 30/t. Phthalic anhydride also went down by EUR 20/t in May. Despite this, producers will milk the cow wherever they can. This is why a strong rollover or even a continued upward trend can be expected for resin prices, although not to the extent seen of late. 

Glass fibre products reacted in two different ways. In the case of imported standard goods – primarily chopped strand mats and direct roving – importers were generally able to increase prices to cover the additional freight costs. The overall long market accepted these costs being priced in without problems, thus leaving scope for further demands. For higher-quality grades, where no significant imports were available, converters proved to be more resilient and were able to keep price increases in check to a greater extent. More movement can only be expected here at the end 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!

 Standard recyclate May 2024: Most prices gain buoyancy / Increased purchase costs cause problems for recyclers

Most prices for standard recyclates trended slightly upwards in May. The premiums, however, were not sufficient to offset increased purchasing costs for base material. Some rLDPE and rHDPE grades even remained at the previous month’s level, which means that some recyclers were left to bear the full cost increase – with the obvious effect on margins.

Recyclers adjusted their output to demand. For rPET, however, this was not entirely successful, as increased imports of recyclates from Asia bolstered supply. Volume calls generally remained rather weak. Only some materials, such as rHDPE pipe and rPET, could benefit from seasonal effects, so their demand reached more or less normal levels.

The underlying problem is unlikely to change much in the weeks to come – recyclers are not in a position to adequately price in their increased purchase costs. That is, if they can push through any premiums at all. In addition to weak demand, competition from low-cost virgin material and recyclate imports is also making business difficult for them.

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 May 2024: Prices rise across the board / Growing demand from automotive and E&E / Trend likely to continue in June

The significant increase in demand allowed recyclers to raise prices in a balanced market environment. Quotations for almost all engineering recyclates trended up in May, in some cases sharply. The automotive and E&E sectors, in particular, ordered significantly more volumes. Processors who had not previously built stocks began to order additional material to be able to fulfil orders reliably and on a long-term basis.

The only exception was PP compounds. A rollover would actually have been expected here due to the balanced market. The fact that prices rose instead was largely a technical reaction based on the upwards adjustment of low-priced processor contracts from the previous month.

Demand is generally expected to remain stable over the coming weeks into June. Several processors who had intended to close over the long weekends in May have therefore called staff back from their holidays and are continuing production. They prefer paying holiday surcharges to foregoing the additional business.

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!

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 May 2024: Prices rise across the board / Growing demand from automotive and E&E / Trend likely to continue in June

The significant increase in demand allowed recyclers to raise prices in a balanced market environment. Quotations for almost all engineering recyclates trended up in May, in some cases sharply. The automotive and E&E sectors, in particular, ordered significantly more volumes. Processors who had not previously built stocks began to order additional material to be able to fulfil orders reliably and on a long-term basis.

The only exception was PP compounds. A rollover would actually have been expected here due to the balanced market. The fact that prices rose instead was largely a technical reaction based on the upwards adjustment of low-priced processor contracts from the previous month.

Demand is generally expected to remain stable over the coming weeks into June. Several processors who had intended to close over the long weekends in May have therefore called staff back from their holidays and are continuing production. They prefer paying holiday surcharges to foregoing the additional business.

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!