Price Reports October 2020

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. To read entire versions of the following reports, go to www.pieweb.com and sign up for a 48-hour free trial!

Articles: October 2020
Standards Thermoplastics  Engineering thermoplastics Polyurethane Feedstocks	Composites/GRP Standard Recyclate  Engineering Recyclate

 

 

  Standard thermoplastics October 2020: Polymer prices almost entirely in line with feedstock development / Slight to medium bottlenecks for PVC and ABS / Situation should for most part continue in November

 

PE: Most of the polyethylene types covered by this report saw prices decline in line with the EUR 10/t reduction in the ethylene cost. The increases previously considered by producers were quickly abandoned, and they had to be content with a rollover at best. Sizes of price reductions varied from one producer to another. Especially with C8 film grades, there was too much material on the market, which almost led to giveaway prices. The price reductions here were significantly larger than with the monomer. Although most of the user market saw a certain improvement in demand – for example with logistics film and agricultural sheet, and caps and closures – it still remained significantly behind what would otherwise be described as normal. Purchases were often made with an eye solely on the end-of-year bonus. Much of the production of semi-finished and finished products is going directly into stock in the hope of a revival in the spring. For November, some producers had announced increases of up to EUR 50/t, but these announcements were made on the assumption that ethylene would increase in price. That did not happen, which is why the polymers will, without exception, go along with the rollover of the feedstock price. At present, there is no sign of a stimulus in the short term.

 

PP: In general, most of the low C3 discount was factored into prices. Only a few grades recorded stable prices: Support for PP-H injection moulding came from revived demand, for PP talc. filled 20 dark/black it was the low price level, and for PP GF2 30 it was the increase in the price of blending components. Supply was diminished due to various plant outages. Some plants are ramping up production again in November, which should improve the general supply situation. However, in the absence of impulses from intermediate product costs and demand, prices should largely move sideways in November.

 

PVC: Notations for PVC rose further in October 2020, reaching a level last seen in August 2018. Producers continued to benefit from the scarce availability brought about by a combination of brisk demand and a number of plant outages. C2 costs have also gone down somewhat, so producers were able to substantially improve their margins. The upward movement is set to continue in November, particularly since a number of plants in Europe are still offline or will only just be starting up again. One producer has already announced increases on the same level as for the previous month irrespective of how ethylene prices develop. The price of compounds and E-PVC pastes will also rise in the wake of the increases for PVC base material.

 

Styrenics: Styrenics presented a mixed picture in October 2020. After the decline in the styrene reference, prices for PS and EPS trended downward, even if the discounts in most cases did not reach the full extent of the SM cost reduction of EUR 33/t. ABS prices, by contrast, increased somewhat – composite costs had indeed declined slightly, but buyers of freely negotiated volumes had to pay tribute to the tight market situation despite slightly declining. By now, PS and EPS volumes are no longer as readily available as they were a few months ago. This will play into the hands of suppliers when they announce price increases in November. It seems inevitable that the price trend will go up in the next few weeks considering the increase of the SM reference of EUR 58/t in November and the current market situation.

 

PET: The European PET market displayed slight firming tendencies in October 2020. This was prompted by a noticeable reduction in supply, with the markets for precursor products staying calm, and demand from end markets remaining low. The pull in demand from the US persisted due to plant shutdowns during the hurricane season. At the same time, maintenance at key European production sites took longer than planned, and import activity declined. Genuine supply bottlenecks only emerged in exceptional cases, however, since demand remained highly manageable following the resurgence of the coronavirus crisis. Rollovers and a maximum price increase of EUR 20/t were seen for the small to medium quantities reported on by PIE. No momentum is likely to emerge to boost demand in November. At the same time, the supply situation is set to return to normal. Markets for precursor products are also calm despite regional turmoil for MEG in North America. All in all, little change will come for notations, with at most slight price reductions the probable outcome 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!

 

 

 

 

  Engineering thermoplastics October 2020: No price increases at start of new quarter / Demand remains weak / Producers utilise lull for maintenance work / Delivery delays until start of 2021

As anticipated, producers of engineering thermoplastics were unable to use the start of the new quarter to implement price increases. They had to be content with simply carrying prices over for all types and grades, as they did last month. This is likely to be the case in the coming months as well, since a revival in demand is not in sight. Only with PC/ABS blends and POM natural could there be moderate rises – around 6% for PC/ABS blends and 10% for POM natural – because of the current low price level. The “Plastixx TT” polymer price index nevertheless pointing slightly up (see graph) can be attributed to ABS, which is not reported on here.

One producer has reacted to the consistently low demand by announcing a measure due to take effect next year: The company said it would finally push through higher PMMA prices from 1 January 2021, thereby passing on the higher costs arising from the procurement of MMA, at least in the medium term. On the other hand, this perhaps removes any scope for negotiating price increases in Q4.

The supply situation for certain products is growing more acute, for example, for PA 6, where some plants are running at higher capacity utilisation while others are operating with limited output. Some producers also face the problem of trained staff laid off due to the Covid-19 crisis who cannot be adequately replaced in the short term.

Overall, producers are reacting differently to the slump in demand. Some are performing maintenance turnarounds, which include one at a key POM production plant. This means that the overall tendency is for longer delivery times. Those who failed to order PC/ABS blends in good time, for example, must reckon on waiting until the new year for a delivery. The situation is similar for transparent and glass fibre-reinforced PC.

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 October 2020: A scramble for isocyanates and polyols / Demand clearly exceeds supply / Bottlenecks expected well into November

A worldwide distribution battle is underway for all reported PU base materials. As a result of the mark-ups in the previous month, there were subsequent increases, mostly in the three-digit range, with some instances even exceeding 10%. This is due to healthy demand and the emergency situation in the supply sector, especially for TDI and polyols.

The dramatic news regarding TDI plant shutdowns is also affecting the market for its sister product MDI. Currently, there is a scramble for sufficient material to meet the increasing demand in all end-user markets. The pull from the US, which has been felt since the beginning of the year, will increase in the coming weeks now that Huntsman has also had to throttle production at a large MDI plant. The lack of materials in the US, where only 40% of total capacity is available for both MDI and TDI, will exacerbate the shortages in Europe. Allocations are already a common occurrence.

For now, the continuing increase in demand is likely to drive the price of MDI up further than the situation would actually require. Little improvement is expected for TDI. Bottlenecks and delays in delivery will continue to occur. BASF has indicated that the Ludwigshafen plant may restart at the end of October. This could relax the situation somewhat in the medium term.

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: Resins and glass fibre flat / Little impetus from demand side / Minor increases possible at end of November

As expected, prices for medium reactive ortho resins remained mostly unchanged in October. Due to soft demand from customer markets, the price drop for principal feedstock styrene had little impact. The only activity was a slight upward momentum at the lower end of the PIE range, but this had no effect on pricing generally.

Few supply restrictions were reported. Some plants were still operating below capacity, which led to minor delivery delays, but these were not as pronounced as they had been. Some regional differences in availability persisted.

Unsurprisingly, notations for glass fibres showed no movement in October, due to lacklustre demand in a barely balanced market.

The monthly styrene contract was fixed EUR 58/t higher, but this will not have much impact in the first week of November. Toward the end of the month, minimal price hikes may be seen, but on the whole these will be limited.

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 October 2020: Discounts on rLDPE and rPET / Other grades remain stable / Demand still mostly subdued / Price pressure in the weeks to come most likely for rHDPE pipes and rPET

In October 2020, recyclate prices on the European market trended either sideways or downwards. Discounts had to be granted on rPET as well as on some rLDPE grades. Suppliers were reacting to the low demand, which was often the result of competition from cheap primary materials in addition to the demand weakness caused by the coronavirus pandemic. The prices of other recyclates remained stable despite the slight decrease in virgin material prices, with rPP and rPS being supported by robust volume calls.

For the demand side, no significant positive stimuli should be expected before the turn of the year. In fact, the situation was quite the opposite – many processors are already cutting back on orders in November to avoid high inventory levels shortly before the year-end balance. rLDPE suppliers will do their best in the next few weeks to counter any demands for discounts, as their thin margins are not likely to yield much in any case. For rPET, however, further discounts cannot be excluded. This also holds true for rHDPE pipe as several recyclers plan to reduce stocks in view of the end of the construction season, and this is likely to be achieved by granting discounts in many cases.

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 October 2020: Prices stay put in October / First signs of a possible move to lift prices for some polycarbonate and polyamide materials / Demand mostly modest

Western European prices of standard recyclate gradually stabilised in July after the downtrend of the previous months came to an end. Only rPET and rHDPE blow moulding grades saw prices decline further because of weak demand. Individual special deals for other materials did not coalesce into a trend. For rLDPE natural film grades, the renewed rise in virgin material notations led to slight price hikes.

The relaxation of coronavirus restrictions in large parts of Europe has led to a hesitant increase in demand. Demand for recyclate was stimulated by rising virgin material prices. In the weeks to come, however, demand is likely to be dampened by the peak of the holiday season. Against this background, the scope for price hikes is limited, and notations are likely to move horizontally. However, this does not apply to rPET – here, the downtrend should continue due to subdued demand.

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!