Price Reports October 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 October 2024: Monomer, polymer go hand in hand – down... / Persistent slump in demand, more imports put pressure on producers / Tough negotiations expected until end of year

PE: Polyethylene prices came under further pressure, with the EUR 32.5/t decline in the ethylene contract adding to the ongoing weak demand situation. As a result, there were a number of special deals in which reductions were agreed well below the fall in the monomer cost. As before, production plants in Europe were operating with cutbacks in output. Contracts were, however, fulfilled without exception – particularly because the arrival of imports boosted supply. Ordering activity remained at a low level, but was always regarded as stable. In November, the market is likely to develop in two directions. The basis will come from the rise in the cost of the monomer: ethylene changed direction and rose EUR 30/t. One producer subsequently tried from mid-October to hike prices by EUR 50/t. At the same time, another producer offered customers reductions for November. The market seems to be trending long because of both imports and the high stocks held by some suppliers. For this reason, quotations are expected to remain stable – unless, that is, they fall as a result of special deals. The year is coming to an end, and some converters will already have put plans in place to cut down their stocks before Christmas for balance-sheet reasons.

PP: The propylene contract price fell by EUR 35/t. As demand remained weak and inexpensive imported materials also came ashore, this put pressure on polymer prices. In many cases, they fell much more sharply than for the precursor – by up to EUR 70/t at the peak. The end of maintenance season and the fact that there was no increase in orders despite the post-holiday period meant that suppliers’ stocks filled up. The market was also enriched by imports from the US, the Middle East, and Asia. All in all, the market was oversupplied. Processors were reluctant to place orders as they were living hand to mouth. Although volumes from the consumer sector reached a robust level, the slump in the automotive industry caused problems for a number of companies. The propylene contract for November was fixed at a markup of 25 EUR/t. Providers will try to pass on at least some of the increased costs. Nevertheless, prices for polypropylene are likely to remain stable. Weak demand and the tendency to reduce inventories will likely limit orders. There are also still inexpensive alternatives. Material is abundantly available on the market. Not much momentum is expected in the last full production month of the year. For the most part, processors are likely to concentrate on reducing their stocks and only order what is absolutely necessary.

PVC: Despite the fall of EUR 32.50/t in the C2 contract, PVC prices moved sideways in October. Minor downward adjustments (by EUR 5/t) were seen in isolated cases. The absolute exceptions were deals concluded at the start of the month with increases of up to EUR 10/t and agreements that still incorporated a catchup for September, with reductions of up to EUR 10/t. Even at its curtailed level, European production was sufficient to permit contracts to be met. Demand continued weak and the construction sector is no longer expected to generate major momentum this year. Call-offs from the pharmaceutical segment, which has been faring considerably better to date, also declined – delivery times have now been reduced drastically. Looking ahead to November, another month of little movement is to be expected. The development in the C2 contract (up EUR 30/t) is set to play no more than a subordinate role. Many producers are reporting that they still cannot produce profitably and are pushing for an improvement in margins. The ongoing lull in demand coupled with a generally low willingness to place orders before the end of the year will no doubt lead to tough negotiations once again. When it comes to supply, sufficient material should still be available, even if the two upstream plant outages are impairing PVC production. One plant in the UK is undergoing maintenance, which will primarily impose limits on the regional availability of S-PVC and E-PVC. One producer has also declared force majeure for a plant in Tessenderlo, Belgium. The VCM produced there is used as feedstock for three PVC plants.

Styrenics: In October 2024, the mood on the styrenics market fit the autumn weather – gloomy. Almost all market players attending the Fakuma trade fair in Friedrichshafen, Germany, were in an equally subdued mood. In addition to often disastrous demand and adverse market conditions, they complained about the lack of positive stimuli or even signs that such impulses might appear in the near future. Prices for styrenics developed accordingly. When the styrene reference fell sharply in October (down EUR 202/t), this heralded significant discounts for polystyrene, EPS, and ABS. Many producers attempted to retain part of the cost reduction to restore their margins, but meagre demand thwarted their plans. Over the course of the month, the discounts for all materials reached the full extent of the monomer decline or were only slightly lower. The only reason price cuts did not go beyond this is probably because the exhausted margins of producers no longer left any room for manoeuvring. In November, quotations are expected to remain largely unchanged, since the styrene reference contract was fixed only minimally higher, by EUR 5/t. With the other composite costs also seeing no major developments (butadiene unchanged, ACN up EUR 41/t), ABS is set to witness a similar development.

PET: The European PET market made a rather disastrous impression in October 2024. Customers were able to continue with their restraint in the light of adequately filled raw material warehouses and plummeting PET prices. More than enough material was thus available from European production. Producers were forced to lower their offer prices considerably in order to sell anything at all. Their endeavours to keep disruptive imports at bay were evident. In the end, triple-digit price cuts were the order of the day. Despite this, only small volumes were purchased. This misery is set to continue in the weeks to come. In many cases, negotiations on the annual contracts for major purchasers, which are usually concluded in October, have not even started. Those making smaller purchases are also sensing further reductions given the ongoing global lull. The producers, in contrast, need to secure sales volumes despite all the cutbacks and temporary shutdowns. Overall, significant price reductions can be expected again, irrespective of the PX contract, which was fixed at a plus of EUR 40/t for October.

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 2024: Prices fall on a broad front / Demand remains weak if not disastrous / Recovery not expected until next year

It was almost inevitable – producers were no longer able to resist the enormous pressure from the weak demand. The quarterly reductions for engineering thermoplastics were up into the triple-digit range, and monthly contracts also experienced a considerable decline. Although producers cut back output as far as they could, stock levels continued to rise. On the demand side, the automotive sector was still weak, and other segments such as E&E also trended even slower than before. 

The second slice of quarterly reductions is likely to drag prices further down across the board. In some cases, market players even expect triple-digit falls. Because orders are generally for very low quantities, producers’ inventories will likely continue to swell. On top of that, imports from Asia are set to pump up the supply situation even more. There are still no signs of any impulses that could lead to anything like a recovery – quite the reverse. 

PMMA was the only polymer to finish October in an uptrend. Producers will likely endeavour to repeat this in November and can therefore be expected to ask for more money for their goods. Whether they succeed, however, is questionable. Poor demand and increased imports could well put a spanner in the works.

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 2024: From plus to rollover to minus – MDI, TDI, polyols develop unevenly / Demand remains weak across the board

Although demand for MDI remained weak, producers once again tried to raise prices – and failed again. In most negotiations, the outcome was an extension of the previous month’s quotations. Even though European producers continued to run their plants at a reduced level, the availability of material was always guaranteed. Demand was also described as weak throughout in the first month of the final quarter. In November, the pressure on producers to adjust their prices at least slightly downwards is likely to increase. There should be more than enough material available to fulfil contracts.

In contrast to MDI, TDI suppliers managed to raise prices on the market for another month in a row. The markups were justified by the effects of maintenance and a supposedly patchy supply situation. However, no allocations were made. Suppliers had sufficient stocks. In addition to this, materials from Saudi Arabia and South Korea augmented the market. Although the availability of European material should return to normal levels next month, no downward price adjustments are expected.

In the case of polyols, the ongoing slump in demand combined with falling costs for precursors ethylene and propylene exerted significant pressure on prices. In individual cases, reductions even exceeded the decline in monomer costs. Producers will likely try with all their might to stop this decline next month – margins have been at rock bottom for months.

Meanwhile, imports from the Middle East and East Asia are threatening to become a fundamental problem. There were several complaints in the PIE panel discussions that cheap material from these regions was putting pressure on local quotations. What infuriates producers especially: instead of strengthening the EU internal market and insisting on PU qualities from European production, even larger end customers demanded the use of low-priced Asian goods.

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 2024: Little change despite weak demand / Glass fibres not set to change before end of year

Weak demand, a clearly declining styrene contract (down by EUR 202/t), and a liquid market could have prompted noticeable reductions. However, the price talks fell far short of that level, with reported transactions settling between plus and minus EUR 30/t, averaging out to a rollover.

With demand remaining weak and the main feedstock of styrene showing a clear downward trend, resin prices are also likely to decline further – especially given that previous price cuts had not yet affected the market in October. The styrene contract for November, which is up EUR 5/t, will presumably not change this, nor will the increase in the Q4 contract for maleic anhydride (up EUR 50/t). 

In its present state, the economy is simply too weak to generate more demand. The automotive and construction industries are suffering in particular.

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 2024: Year drags to a close / Weak demand, declining prices / Inventory reduction dominates

The fourth quarter of 2024 began with a sideways movement for numerous grades and a clear decline for PET. The ongoing restrained demand situation did not allow suppliers to increase prices. Out of sheer necessity and to avoid building up too much stock, some recyclers granted special discounts on volume purchases. High-quality grades were mostly able to maintain their price level, while simple grades trended lower.

Recyclers kept the output of their lines to a minimum. While orders could nevertheless be met at all times, this was mainly due to processors ordering few volumes across the board. If at all, call-offs came from ongoing projects. Ordering activity from the automotive segments remains weak, the beverage season is over (see PET), and the construction industry is also clocking out. Only packaging applications are still drawing some volumes – admittedly only within the scope of what is possible with regard to recyclates.

No major changes are expected for the market as a whole in the following month, either. For most suppliers and processors, the year has been ticked off already, with November and December likely to dawdle along. More and more market players are looking to 2025. For the most part, processors will likely not order beyond their immediate needs, especially as they are increasingly focusing on reducing stocks as the turn of the year approaches.

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 2024: No breather for recyclers at start of new quarter / Demand remains main problem

Recyclers who had hoped at least for a brief recovery phase at the end of the last quarter were soon disappointed. Only with POM were they at least able to negotiate a rollover. Prices for all other engineering grades were fixed lower. As before, there are no signs of them bottoming out.

The reason for the continuing downward trend is that ordering activity by converters is not only still weak, but has in fact also deteriorated even further. Most order books were only lightly filled, and some converters announced at the Fakuma trade fair in mid-October that they want to extend their Christmas holidays this year. True impulses for a recovery were not seen from a single customer sector – and the orders that were placed were almost always for small volumes.

Not much is likely to change as regards the miserable situation before the end of the year – and probably even beyond that. Nobody expects demand to brighten up. Recyclers often have their backs against the wall and will probably have to endure a further round of price cuts.

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!