Price Reports November 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 November 2024: Quotations trend lower despite rise in monomer costs / Converters reduce stock for balance-sheet reasons, putting added pressure on demand / No change expected in December

PE: It emerged rather early on that the rise in the cost of C2 monomer of EUR 30/t would not serve as a pointer for polyethylene prices. At the end of October, the first offers went out to converters indicating downward price adjustments. More and more producers followed suit over the course of the month. The trend prevailed across all types. Price increases were therefore not an issue. The reason was that demand was too weak, and supply was too good. Despite the cutbacks in output at many European plants, there was more material available on the market than required to fulfil the contracts. Since converters bought only what they absolutely needed and wanted to cut back stocks for balance-sheet reasons at the end of the year, demand remained stuck at a low level. Of course, no order impulses were expected at the end of the year anyway. For December, market players do not anticipate fundamental changes. The fall of EUR 7.5/t in the ethylene contract could well lead the way for more downward price adjustments. Apart from that, some producers would want to put themselves in a better position for year-end conversations. Therefore, further concessions are to be expected. The availability of material on the market is expected to remain adequate across all types. Since converters are still waiting in vain for orders, and demand is likely to stay weak in the Christmas month, many companies plan to send their employees home earlier at the end of the year.

PP: In November, the propylene contract increased by EUR 25/t. However, producers failed in their attempt to pass these costs on to processors. At the beginning of the month, negotiations mostly closed at a rollover. As the month progressed, the marked reluctance to buy led to downward price adjustments. Despite all the plant curtailments and maintenance, sufficient material was available. This was also due to stagnating ordering activity. Many processors are suffering from low demand and are therefore endeavouring to reduce stocks. For December, C3 was discounted by EUR 10/t. This will put further pressure on polypropylene prices during the Christmas month. Although several producers reported forces majeures towards the end of November, this is unlikely to have any impact on the supply situation in the short production month of December. Little material is bought at the end of the year anyway – the weak ordering situation is even prompting some companies to send their employees off for the Christmas holidays early. A look back at the year as a whole reveals some remarkable developments. In the first quarter, prices for polypropylene rose sharply – not least due to the delay in imports caused by the attacks by the Houthi rebels – and the difference to the C3 price widened. Since then, the gap between monomer and polymer has shrunk, but it is still there. Processors will have this in mind during their annual negotiations and are thus expected to demand further reductions.

PVC: Up until the second half of November, Western European producers remained unaccommodating and were unwilling to engage in discussions – it was regarded as a matter of course that the C2 increase (EUR 30/t) would be passed on. One PVC producer in particular adopted such a brash approach and was so averse to negotiating that this stubbornness will no doubt be reflected in the annual negotiations. For the rest, the persistent pressure exerted by the converters in light of their own rather underwhelming situation prompted a slight softening of the unyielding attitude of the majority of producers. All in all, price increases fluctuated around the EUR 5/t mark. There was no shortage of material even though many production plants were not running at full capacity and others had shut for maintenance. No momentum emerged from any industry on the demand side. Converters are thus making preparations for the end of the year – running down stocks to just their reserves. No major fluctuations in PVC prices are expected in December, either. The ethylene contract was fixed EUR 7.50/t lower, which should, in purely mathematical terms, mean a EUR 3.25/t decline for vinyl plastics. In any case, the focus is on bringing annual negotiations to an end. This year, too, ordering activity is very weak in the Christmas month. A number of converters are starting their holidays earlier and shutting down production already in the third week of December. It will be interesting to see how the anti-dumping duties that the UK has imposed on PVC imports will affect the EU market.

Styrenics: Not much happened in the dull month of November. The slight EUR 5/t increase in the styrene reference was not enough to jumpstart prices for polystyrene and EPS. Prices for ABS likewise experienced minimal adjustments at best, more nudged than propelled by a marginal increase in composite costs. Long story short – as in previous months, demand is too weak for producers to achieve significant margin improvements. At the same time, their margins are too thin to leave any room for concessions; individual corrections to some PS or EPS highs notwithstanding. Styrenics prices thus essentially follow the monomer cost change, with ABS depending, of course, also on butadiene and ACN. As the contract price for styrene declined by just EUR 7/t in December, EPS and PS prices are expected to remain largely stable at the end of the year. This also applies to ABS, where the other composite costs did not experience significant fluctuations either (butadiene down EUR 50/t, ACN up EUR 9/t). The minor upward adjustments that were made in November on the grounds of a slight increase in composite costs are now likely to be reversed.

PET: The situation on the European PET market in November was a particularly mixed one. Suppliers adopted various tactical approaches. A number of producers with evidently well-stocked warehouses engaged in price wars with lower-cost imports, granting major buyers up to triple-digit reductions. Producers with more flexible scheduling options, however, succeeded in placing their material on the market with significantly smaller reductions, or even a rollover. At the same time, demand remained very low, with consumer mood at rock bottom due to the significant rise in the cost of living caused by inflation. Developments in November would suggest that prices have bottomed out. The PX reference went down by EUR 35/t, almost cancelling out the previous month’s increase. The clearly strengthened US dollar is alleviating the pressure of imports and, at the same time, consolidations are starting to have an impact. No new momentum is expected on the demand side. A rollover would thus seem likely for the end of the year.

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 November 2024: Prices fall further / Stock levels rise on weak demand, increasing imports

Despite all the interventions with supply, Western European producers had to accept further price cuts in November. The pressure of the quarterly reductions was simply too high, carrying over into the monthly prices. At the same time, producers’ stock levels continued to rise last month as sales were very low, regardless of the type. Only rarely was a converter in a position to report a revival in demand. The main trend reflected another month with partly rapid sales declines.
 

Even PMMA was unable to hang on to its previous price level and moved lower in November. Ordering from the construction and automotive segments was negligible, which inevitably led to mounting stock levels for producers. At the same time, local suppliers also had to battle increasing imports.

In December, too, another slice of the quarterly reductions is due. At present, there are few signs that would speak against prices crumbling further. Speculation clearly indicates additional special sales in the short month before Christmas. Many producers are set to shut down their compounding lines earlier than usual, bringing the year to an end before the middle of the month. The expectations are for a very calm December with extended production breaks over Christmas and the New Year.

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 November 2024: Weak demand pressures isocyanate prices / Extended Christmas holidays to prolong decline

The entire polyurethane value chain in Western Europe was characterised by good supply and weak demand in November 2024. At the beginning of the month, Covestro briefly reported difficulties in its ability to deliver MDI – which is why competitors tried to push up prices. In view of the generally good supply, however, neither this nor the EUR 56/t increase in the benzene contract were compelling arguments. The weak demand offset both factors, and rollovers were typically agreed on swiftly for all isocyanates. As the month progressed, however, agreements at lower rates were more common, with discounts of up to EUR 50/t at their highest.

The ordering situation for polyols was also so weak that higher costs for the precursors ethylene and propylene did not have a dampening effect. For some specialities, there were even discounts in the three-digit range. 

Demand remained low. The construction, furniture, and automotive industries were preparing for the approaching year-end. The only bright spot was the gardening segment, where pre-production for the spring started.

Weak demand and producers’ well-filled stocks will continue to put pressure on prices. Initial offers for December confirm this assessment. Many customers will also take an extended Christmas break early on.

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 November 2024: Converters insist on further price reductions for resins / Scarcely any movement for glass fibres

November marked the end of the typical sluggishness with which ortho resins respond to fluctuations in feedstock prices. Converters finally wanted to benefit from the fall in the styrene reference in October and were able to achieve significant price reductions in some cases.

All in all, only what was absolutely necessary was purchased. The weakness of the automotive industry is impacting the entire market. Converters will likely push producers for additional price reductions in December, arguing that the decline in styrene prices has not yet been fully reflected. The ongoing low demand will strengthen their position in these negotiations.

Prices for glass fibre products used for reinforcement remained largely unchanged, although there were reports during the discussions with PIE’s panel of experts that increasing volumes were arriving from Asia. Virtually no price adjustments are to be expected here in December, either.

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 November 2024: Weak demand puts further pressure on prices / Processors reduce stocks before year-end

Across the board, Western European standard recyclate quotations decreased slightly in November. Generally speaking, demand remained weak and processors took advantage of this to push for price reductions. Recyclers often had nothing to counter this, given abundant stocks and the lack of any stimuli.

December is unlikely to change the market situation in any significant manner. Many processors will likely continue to shy away from buying more materials than absolutely necessary in view of the upcoming annual balance sheet. The short production month of December is also projected to further dampen demand. Some recyclers are therefore considering extended holiday plant shutdowns.

Against this backdrop, the prices of most standard thermoplastics are likely to decline further in December. However, for some materials – some rPE grades, for example – there could also be a kind of Christmas truce, with recyclate quotes remaining largely unchanged.

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 November 2024: Price slump slows down / Converters nevertheless call for reductions / No recovery expected in December

Price stability was an important target for many Western European recyclers in November, but they were unable to really achieve it. The drop in prices did, however, slow compared with the previous months. Many converters nevertheless managed to push through their calls for reductions. 

Recyclers were mostly able to avoid an additional build-up of stocks through intensive cutbacks in production. They nevertheless had no problems whatsoever fulfilling existing contracts. A few converters even reported a slight improvement in ordering activity by their customers. All others have already put the year 2024 to bed and are now occupied with sorting out their stock situation for the end of the year. 

Despite weak demand, recyclers are not expected to accept any further price reductions. For the anticipated low sales volumes, they do not want to lower the contract price as a whole. Instead, they are sticking to their plans to halt production over Boxing Week. The shorter production time in December will put an additional damper on demand. Furthermore, many converters will run down their inventories as far as possible with an eye on the annual balance sheet.

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!