Price Reports October 2021

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!

Articles: October 2021
Standards Thermoplastics Engineering thermoplastics Polyurethane Feedstocks	Composites/GRP Standard Recyclate Engineering Recyclate

 

  Standard thermoplastics October 2021: Tight supply, fully utilised production capacities and hardly any imports cause uncertainty on the markets / Not all producers dare to accept energy cost surcharges / PET remains extremely scarce

PE: In contrast to September, October began with falling prices for low-density film, but it quickly became clear that skyrocketing energy costs would dominate the scene before very long. By the end of the month, prices were inevitably on the rise again. Supply was tight and will basically remain so. Imports from the US and Middle East are at least easing the situation to a certain extent. Injection moulding material is also very short. Production capacities at European injection moulders are completely exhausted, and imports from overseas are still taking a long time to arrive and keeping supplies very short. The situation is also likely to remain precarious with C6 and C8 film because the agricultural sector, a major customer for these grades, is still holding back with its orders. Numerous farmers are not prepared to submit to price escalation clauses but are speculating on better prices at the beginning of the year. This is also clearly reflected in demand. With EVA, the misery is the same as it was last month: the market is empty – completely empty. Prices are rising across the board. If no material is available, there is nothing to process. At the moment, there is no sign of any change to this disastrous situation.

PP: For the most part, producers were able to pass on the EUR 25/t higher cost of C3 only to buyers of injection moulding grade PP in October 2021. For the other grades, the soft demand from the automotive sector and non-automotive markets such as white goods and household appliances was a hindrance. High energy costs caused lively debates, for which individual suppliers wanted to impose a special surcharge – with only limited success so far. The issue, however, is not off the table and will inevitably spark new discussions in November. Even without this, converters in any case should be prepared to pay more, as the November C3 reference was fixed EUR 95/t higher. In view of the reticent demand, it doesn’t seem all that likely that producers will succeed in passing on this back-door increase in full either.

PVC: The European PVC market is in danger of becoming overwhelmed. The supply situation remains exceedingly tight in October, with no end to the price rises and the first customers threatening to turn their backs on the material. A number of municipalities have already announced that they will be switching back to concrete instead of PVC pipes in the future, due to the dramatic cost situation for infrastructure projects such as sewer renovations. And other investment projects – whether funded by public money or by private consumers – have been postponed altogether. All these are fatal signs for the precarious, hoped-for economic recovery following the pandemic. Additional plant maintenance is likely to keep the supply situation tense. Plant production-rates have shrunk as low as just 70%. Imports from North America and Asia are also lacking everywhere. Despite the tight situation, it has proved possible to honour contract agreements at the lower end. The construction industry continues to be the main driver of demand with no drop in its robust level of orders. Demand from export markets similarly remains high, with prices of USD 2,400/t to USD 2,500/t being paid already. Further cost increases are to be expected for blends. These are being triggered not only by the PVC base material but also by additives, titanium dioxide and plasticisers. The fact that the authorities are now increasingly looking into the environmental impact of individual additives is similarly causing unrest in the market and driving up prices.

Styrenics: In October 2021, styrenics prices trended slightly upwards. Once again, the styrene reference, which rose EUR 23/t at the start of Q3, served as a guide. Despite ABS and EPS still being undersupplied, producers contented themselves with increases that were only slightly above the cost changes to account for the already very high price level; as for polystyrene, restrained demand thwarted any bolder calls for premiums. The overall picture for the past months, however, did not change in October – while PS prices are now well below the all-time highs of May, quotations for EPS and ABS remained at very high levels just below their previous record values in the spring. This trend should be broken in November: strongly increased SM spot prices are heralding a triple-digit hike in the styrene reference (the contract was not yet available at press time). In addition, there’s the issue of increased energy costs, for which individual suppliers have already announced an equally hefty special surcharge. Against this backdrop, it cannot be ruled out that prices will be pushed to new record highs – at least in the case of EPS and ABS.

PET: “Things don’t happen as planned, and certainly never according to your expectations” – the developments in Europe’s PET markets in October 2021 can be summed up in this simple sentence. While things seemed relatively calm at the end of September, events occured rapidly soon after. Midway through the month, it became clear that the cost of both raw materials and energy was skyrocketing. No one had been thinking about imports for a long time now. Then came more bad news from Poland, where production was floundering again. Supply from European producers is becoming exceedingly tight. Those who had concluded contracts earlier on in the month got by with lower double-digit increases in some cases, while clear triple-digit hikes were the rule, as of midway through the month. Demand, which had been running at more of a moderate low-season level until then, followed with a parallel, panic-driven upsurge. Forecasts are extremely uncertain at present. No one knows how the global markets and conditions will develop. All too frequently, assumptions have had to be thrown out the window, in the wake of the pandemic. While a collapse of notations in the logistics or energy sector would seem unlikely, it is, of course, always feasible – in the same way as an even greater increase could come about, despite this being scarcely imaginable. The situation is likely to remain extremely tense, however, with virtually no improvement to be expected before 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 October 2021: Differing price development / Demand gradually declines further / Glass fibres, flame retardants and carbon black will drive prices up in November

For some engineering thermoplastics, prices continued to rise in October – in some cases, quite considerably – whereas the prices for polycarbonate, polyamide 6 and POM barely changed. The still hard-hit PA 6.6 compounds, because of the feedstock facilities in Europe that were only restarted at the end of October, hit a new high, which was for the first time above the EUR 6,000/t mark.

With the exception of car production, demand up to mid-October remained at a fairly acceptable level. Then there was a significant division: Whereas partial call-offs for small and medium-sized high-volume models and combustion engine types fell considerably, demand for components for premium vehicles remained at a solid, even increasing level. Overall, however, the trend was down and is likely to be reinforced with the end of the building season.

Just as mixed as the price development, was the availability of base polymers. On top of this came the bottlenecks with the respective additives above all for reinforced, flame-retardant and black grades, the availability of which will presumably not improve in November either.

Only PA 6 and PMMA will presumably take a breather in November. For all other engineering thermoplastics, prices will continue to rise. In particular, glass fibre-reinforced types will undergo a considerable upward push, especially because energy surcharges are now being applied in the very energy-intensive glass-fibre production.

 

 

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 October 2021: Mixed trend for MDI, TDI, polyol prices / Rollover for several grades / Restarting of plants eases situation / Stockpiling remains difficult to impossible

The restart of plants for the production of MDI – whether scheduled or unscheduled – that had lain idle for a long time, was reflected in an improved delivery capacity. European production is so far available; at least no shutdowns are projected. Imports are likely to remain a problem, not only because of the prohibitive cost of logistics.

The construction industry is still booming and demanding material. However, this is likely to weaken due to seasonal factors. The result: it will probably not be possible to implement the surcharges demanded by producers at the level targeted. Compared to 2020, the automotive, textile and electrical sectors are lagging noticeably behind this year. Stockpiling is likely to remain beyond the realms of possibility.

The rollover for TDI seems to indicate a trend reversal. While the picture has been dominated by discounts since May, the price has now managed to stabilise at its current level. With polyols, not much emerged in terms of reductions. Those who had negotiated quarterly quotations received larger discounts. Otherwise, there was minimal leeway, depending on the volume ordered.

 

 

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 October 2021: Ortho resins cost even more / No relief up to year-end despite weaker demand / Surging glass fibre prices the latest hurdle

Scarce imports and limited availability along the styrenics chain pushed average prices for medium reactive ortho resins even higher. The extent of the increase depended largely on the producer and the volume ordered.

The downward trend in demand for some starting materials has not yet been reflected in their prices. These remain high to very high, which means that resin buyers will see no relief in November, either. In a surprise development, the November styrene reference contract was fixed EUR 232/t higher, and this will propel the price for ortho resins still higher as the year’s end approaches. Converters are a long way from being in a position to build inventories. Order activity will likely recede further towards the end of the year.

Without exception, all glass fibre products cost more in October than in September. How to pass on these incessantly rising prices to customers is the burning question all converters currently face. The price spiral shows no sign of winding down. At the latest in January, buyers should expect further substantial hikes, in some cases even before the New Year holiday.

 

 

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 2021: Pure industrial film scrap picking up, but not like clear PET / European recyclers intend to price in increased costs

In the films segment, production scrap was only available to a limited extent. As a result, the price of pure industrial film waste increased as traders diverted larger volumes to Asia. Recyclers in Europe have announced that they intend to price in the significantly increased costs for production scrap, energy and logistics. In this, they are braced and ready to take a hard stance: if the cost transfer is not successful, plants are to be temporarily shut down.

As for pipe grades, there seem to be no seasonal effects yet. Volume calls from the construction sector in particular are showing no signs of fatigue. In the case of clear PET, the tight availability of recyclates has led to a new round of drastic price increases, even if the costs for clear scrap material have remained stable. The conversion mania of brand owners to use more rPET for their packaging products is boundless. When will the market start to fight back? Until this happens, demand for secondary material is likely to fuel an ongoing price rally.

 

 

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 2021: Slowdown effect as year winds down / Prices rise for reinforced, flame-retardant grades / Demand to mostly remain high as supply often very short

With the exception of recyclate based on PA 6 natural materials and glass fibre-reinforced black grades, most recycling companies in Europe kept their prices unchanged at the start of the new quarter. Although the generally tight and expensive base material would have been reason enough to factor in cost increases, the end-of-year mode put tight constraints on negotiating partners. Above all the standard-grade materials were billed at the same price as in the previous month.

Availability of base material has improved somewhat because recyclers have begun to tap fresh supply sources throughout Europe and beyond and are buying up plastics scrap of all kinds. The additional expense, however, is enormous. The industry is doing everything it can to satisfy at least the demands of regular customers. But for new customers, it will be difficult because their material needs will be almost impossible to satisfy before the start of the new year.

As before, regular customers will try to increase the size of their orders to avoid buying even more primary material, which continues to be very expensive. Whether their calculation succeeds is uncertain as order books are full to the end of the year. Not much is likely to change in terms of price, and there is also little room for spot purchases, etc., that are not covered by contracts. Exceptions could be ABS and PA 6 recyclate, especially glass fibre-reinforced or flame-retardant grades.

 

 

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!