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The following information is provided by Plastics Information Europe. For more than 34 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.
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Standard Thermoplastics October 2017: Overall marginal increases / Cost transfer prevails with few exceptions / Discounts on styrenics and PET in sight for November / Demand falls
PE: Improved availability of some PE materials undermined producers' intentions to push through increases. By the end of the month, there were only price hikes in cases where notations were particularly low in the first place. Most buyers had to fork out no more than the EUR 30/t rise in the cost of C2. Only with LLDPE (C4) film grades were producers also able to push through margin increases due to the limited supply. Fewer imports and the outage of Versalis's facility in Dunkirk / France had a big impact. In November, development will depend on how severe the influence of the force majeure at Borealis will be. This is not clear because no details have been given on which types are affected. There could be restrictions only for certain products. In the low-pressure segment, there could be a delay with the C4 film grades. A lot depends on when imports start arriving again from the US. Converters are expected to hold back on purchasing activity in November. Many companies have fairly full order books, but also adequate stocks. The season is also coming to an end for building materials like pipes. Above-average ordering activity is not likely.
PP: In October, PP producers in western Europe for the most part were unable to make the hoped-for margin gains as cheaper polymer from central European production entered the market to bridge the tightness gap. While suppliers of homopolymer were largely able to pass on their higher costs, copolymer producers were not always able to, and here the rate of price increase was lower. The already high prices and somewhat firmer margins kept many buyers away. Compounds followed the trend of the entire propylene chain. In major part, compounders were able to pass on their own higher cost. For November, both cost development and the market situation point to a sideways trend.
PVC: In the course of October, Europe's PVC producers were forced to acknowledge that the original price rises they had intended to push through were too ambitious. The fall in demand, especially in the underground engineering sector, left no scope for hikes in the first month of the fourth quarter. Hence, the producers ultimately passed on the pro-rata price rise for ethylene. This similarly applied to paste grades and flexible compounds too, where prices only reflected the increase in the matrix material. For rigid PVC compounds, by contrast, the renewed cost rises for titanium dioxide and stabilisers had a disproportionate impact, in the same way as in the past few months. The signs for November are pointing primarily to stagnating notations. One exception will be non-plasticised compounds, where additives are still exerting upward pressure.
Styrenics: The downward correction of SM by EUR 110/t also provoked sinking styrenics prices. PS fell the most, as the entire cost reduction was usually passed on to processors. For EPS, several suppliers kept part of the reduction by leveraging with the tight supply. Discounted amounts varied between producers. The price development for ABS was also modest, since increased butadiene and ACN costs dampened the decline in composite costs. The supply situation for EPS, especially insulation materials, remained difficult. By contrast, desired volumes of PS and ABS were largely available, as many processors put their bets on further discounts in November and postponed their orders where possible. Indeed, the SM reference contract fell by EUR 90/t. Styrenics producers will try to withhold parts of the cost reduction again. However, this will be more difficult for them than in previous months, especially for PS and ABS.
PET: Even the most delightful party comes to an end sometime. Over the past few months, Europe's PET producers have had much more fun than they have had for a long time, since they succeeded in increasing their margins. This good mood rapidly deteriorated again in October 2017, however. On the one hand, notations in Asia fell, prompting the arrival of a third more imports, with aggressive price labels. On the other hand, the summer beverage season, and hence bottle season, quietly came to an end, prompting a slump in demand. Against this background, PET prices logically moved downwards, even if the decline has not yet assumed dramatic proportions. This would seem to clearly indicate a turning point in the downward trend that has been prevailing on the world's oversupplied polyester markets for many years. For November, at least, further price reductions are to be expected, even if upward tendencies are evident in the Americas due to discontinued production at M&G.
For more than 34 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 October 2017: Market tends firm / Minor falls with PC and PA 6 / Prices otherwise stable and trending upwards / November expected to continue firmer
In October, PC and PA prices on the European market fell slightly. The supply situation was so good that producers had little option but to pass on at least part of the cost reductions from the previous weeks. The picture with PA 6.6 was a little different and prices were only kept stable through competitive overlap with PA 6. PBT went up yet again, while PMMA took a short breather. POM remained stable, but there have been one or two signs of movement lately. With PP compounds, the higher costs were factored in. Conversely, ABS notations fell due to the decline in the SM reference price.
In November, the market could consolidate on a broad basis. Materials that have recently been tending weaker should stabilise and the upward trend with the others will become stronger. This means at least moderate increases must be expected with many grades of PA 6.6, PBT, POM and PMMA.
For more than 34 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 October 2017: Slight upward trend holds / BASF's TDI glitch makes scant impression / Demand brisk
Notations for all PU starting materials were swept slightly upward in October. Large MDI accounts could foil suppliers’ hike plans, and most transactions went through at a rollover. Smaller accounts had to swallow increases of up to EUR 50/t against September. Demand continued brisk, in particular from the building sector, even though the already high level did not leave much room for improvement. In November, the existing supply gaps will become more visible, but upward pressure should diminish as the end of the year nears. European MDI notations can be expected to continue pointing up.
The TDI market has been overshadowed by the product contamination at BASF, which clouded the chemical giant’s image. The knock-on effect for October pricing was slight, as most transactions had been concluded earlier. As the extent of the problems at Ludwigshafen became clear, notations moved up EUR 10-60/t. In October trading, the strong demand gave way somewhat, especially from the bedding sector, where buyers held back orders. At press time, the situation was still unclear. In the main, the market appears stable, but the BASF incident created a certain turbulence. When the dust settles, stability will probably prevail, since BASF's affected plant is undergoing a controlled re-start.
For more than 34 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 October 2017: Only minor decreases for resins so far / Sinking SM notation points the way downwards / Standard reinforcement fibres see marginal rises
The EUR 110/t decline in the styrene reference (SM) contract in October did not push resins prices downwards. On the contrary, even larger converters still faced hikes triggered by the rise in the September SM contract. By the reverse token, distributors and traders have already partially benefited from cheaper feedstock prices. On the whole, it is noticeable that producers have been able to quickly pass on their higher cost for volatile styrene. Ordering at present is quite brisk, especially from the automotive sector (for both passenger cars and utility vehicles).
After peaking in September, the styrene reference contract for November declined by EUR 90/t and thus moved back to the level seen in summer. Phthalic acid anhydride prices rolled over. The contract for maleic acid anhydride had not yet been fixed at press time because the negotiating parties could not agree on a price. In the wake of styrene's decline, notations for ortho resins are trending clearly downwards and are expected to settle at least EUR 30/t lower.
With a few exceptions, glass fibre product remained stable. October saw minor price rises for cheap standard grades of chopped strand mats and assembled roving. From the current perspective, noticeable price movements are not to be expected up to the end of the year.
For more than 34 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!
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Standard Recyclate October 2017: Little price movement / Rollovers dominating / Slight premiums for clear rPET only
Recyclate notations showed little change in the weeks until mid-October. Clear grades of recycled PET were the only ones to move slightly upwards. All other recyclate grades were dominated by rollovers due to the rather subdued demand.
In the next few weeks, and in November, notations are unlikely to move in any significant way. This is especially due to many customers focusing on their upcoming year-end balance, which is also contributing to their reduced willingness to build up inventory. In addition, there is an upcoming bank holiday in Germany on 31 October.
For more than 34 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 October 2017: Prices move in different directions / Downtrend for rPA 6 / Demand reasonable
Prices of engineering recyclate tended to vary from one product to the next. Whereas rates for most polyamide grades covered by this report remained unchanged, there was an upward trend for rABS, rPOM, rPP and rPC/ABS blends – by as much as EUR 30/t. For black reinforced rPA 6, there were significant price cuts. Recycling companies are adequately supplied with base material even though prices remained high. Recyclate sellers cannot complain with demand. There was virtually no summer lull this year and ordering activity is still good.
For the coming weeks, the trends are expected to continue, with the exception of rABS. Prices of black reinforced rPA 6 are likely to further decline, but for rPP compounds, rPC/ABS and rPOM, modest increases are probable once recycling companies get the courage to act. The wider gap between the secondary and primary sectors should offer enough scope for this. For rABS, stability is likely to be order of the day. Ordering activity from all segments should remain brisk before the approaching year-end begins to dampen things down.
For more than 34 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!
