Price Reports September 2017

PP: European PP producers would have liked to have raised their prices by considerably more than the EUR 40/t increase in the propylene reference contract that resulted in September 2017. They only managed to do so, however, in cases where prices were at a particularly low level. Producers generally achieved moderate gains, while faring somewhat better with copolymers that were tending short. Buyers exercised too much restraint for any more, feeling that prices were running high. With compounds, by contrast, structural level-adjustments at one of the major suppliers prompted a slight upward movement.

In October, prices are set to follow the propylene reference contract once more, which has undergone a moderate rise again. The slight bottlenecks in September are being resolved and buyers are no longer necessarily under pressure to act.

PVC: A number of big suppliers with high-flying expectations of hikes to increase their margins saw their hopes grounded by the realities of the market in September. The feared pull for exports to North America in the wake of Hurricane “Harvey” failed to materialise. For the S-PVC base grades, just half the amount of the increase in the ethylene reference contract was passed on in most cases.

For unplasticised rigid PVC, by contrast, hikes in additives such as titanium dioxide and modifiers caused disproportionate increases in ready mixed materials compared to matrix material. In contrast, an initial alleviation of what had previously been high plasticiser prices had the opposite effect for flexible compounds, curtailing the rises here. Paste grades rose with the upward movement in costs.

Demand in October is generally characterised by the first signs that the end of the year is approaching. There are no essential supply restrictions in sight. Any increases will probably only involve the moderate rise in costs being passed on. For compounds, the trends prevailing in September seem set to continue.

Styrenics: In most cases, producers have entirely passed on the steep cost increase caused by an SM reference that has leaped up EUR 190/t in September. For ABS and especially for EPS, where the market was characterised by supply shortage, many suppliers additionally topped the premiums with increased margins.

The roller coaster ride of styrenics prices continues. In October, the SM reference contract fell by EUR 110/t. At least PS and EPS prices are likely to plummet again in the wake of this decrease, even if producers are unlikely to transfer the entire cost decrease to their customers. ABS is likely to decline only slightly, because butadiene has increased by EUR 125/t and ACN is expected to also go up, which counterbalances the effects of the SM cost reduction by EUR 110/t.

PET: Chaos prevailed again on the European PET market in September and spot prices frequently underwent triple-digit increases. In contrast, the spectrum of price movements with contract and regular business was very broad, extending from a rollover to triple-digit hikes. The moderate rise in costs played only a minor role.

At the beginning of September, the hurricane in the US left a considerable amount of instability in its wake. Furthermore, the production stoppages in Belgium and – at least in the first half of the month – the UK deprived the market of a significant amount of material. Although imports are around, they are not particularly attractive price-wise. After the very high spot prices of the last few months, many buyers are on the lookout for reliable contract supplies. In this respect, the picture has turned around completely during the course of 2017.

Many players say the situation should calm down in October, and expect the declining seasonal demand for bottles to also lead to an easing of demand. At the same time, there are indications from the UK that the FM at a production line in Wilton could soon be lifted.

In the US, an important producer, M&G Polymers, seems to be about to go under, and production has been halted in a situation comparable to that at the site in Geel / Belgium due to liquidity problems. In view of the flood of material still arriving from Asia, bottlenecks are unlikely. Nevertheless, the era of excessive supplies of PET seems to be coming to an end, with two key top-ten producers in financial difficulties.

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 September 2017: Quiet varied picture / Price cuts with PC and PA 6 / Further substantial increases with PMMA and now also with PBT / Trends likely to continue in October

Engineering plastics markets in Europe presented a highly varied picture in September 2017. Whereas important materials like PC and PA 6 shed their first feathers because of the recent falls in feedstock costs, the near-dramatic developments along the PMMA and PBT feedstock chains have now become apparent in the shape of price increases for these two products. The situation with PA 6.6 also became more and more tense, but here the overlapping sector of the market with PA 6 had a stabilising effect. In contrast, POM seems to be a haven of peace presently.

Meanwhile, ABS also shot up in line with the sudden leap in the styrene reference price. The PP compounds also paid the price for the rise in the cost of propylene and its standard polymer derivatives.

With the classic engineering plastics, the respective trends in September should continue into October. Many quarterly agreements are still being negotiated, which underlines the uncertainty and the wrangling in many segments. However, the basic directions remain clear: Whereas PC and PA 6 will continue to be under downward pressure, PBT and especially PMMA will face further strong upward impulses.

Although ABS, which is heavily influenced by commodities, will be affected by another significant drop in the cost of styrene, it will be largely cancelled out by increases for butadiene and ACN. PP compounds will also continue to rise at a moderate rate.

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 September 2017: Global supply hit by US hurricane and refinery stoppages in China / MDI and TDI climb again

MDI prices rose again in September, and there were reports of triple-digit increases with the polymeric and pure grades. This was attributable not only to the aftermath of the European production problems but also to a general global shortage of supply. Key production lines on the US Gulf Coast were put out of action by Hurricane "Harvey". Although they were back in operation quickly, it will take some time for the market to fully recover. In China, there is an even larger plight because refinery closures in Shandong have considerably depleted supply of MDI. Here, its price in dollars has rocketed within a very short time by a four-digit amount. All this has left a significant scar on European business. Further increases are expected in the coming weeks. MDI is following TDI, which has been undergoing a previously unmatched increase since spring 2016. At its record level, producers found it more difficult to push through additional hikes, but customers could not prevent increases. Looking to October, things are pointing to stability again. Stagnation has largely dominated the polyols picture recently, and nothing is likely to change in the coming weeks.

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 September 2017: Good demand drives premiums on resins / Glass fibre products inconsistent / No restrictions on availability / Rollover expected for October

Resin prices trended upwards in September, following the hefty upswing of the main feedstock, styrene. Movement remained inconsistent, however, and there were a couple of rollovers. All in all, especially the low prices were brought in line. The situation was similar for glass fibre materials, where mainly the standard grades of chopped strand mats were yielding, while roving could garner a slight upward trend. Demand was good and trending up. Supply, which was somewhat short as of late, relaxed with the increasing normalisation of styrene production.

For November, forecasts are currently predicting another discount on styrene, even if it will probably turn out moderate – when the situation remains as it is. Even small calamities could cause the highly nervous market players to twitch, which makes for a somewhat unpredictable future. Against this backdrop, resins producers will try to keep up the higher price level in October, just as they managed to in previous months. In this, the increasing demand will only play into their hands. The most likely scenario is therefore a weak rollover, with a small probability for modest discounts.

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!

 Standard Recyclate September 2017: Minor price movements / rPET gains a bit / Rising virgin prices will bring an upturn in October

The weeks until mid-September were marked by the ending holiday season. Demand slowly increased again, but stimuli for recyclate price movements were still few and far between. Clear rPET grades could benefit from primary material bottlenecks, while rLDPE film grade prices continued to be limited by China’s announcement of an import ban on certain types of plastic waste, especially the more simple grades. Apart from that, there were mostly rollovers.

A new dynamic could arise from virgin materials in the weeks to come, as those were gaining across the board. However, the effects will reach recyclates with a certain delay, if at all, which means that the next few weeks are unlikely to see any significant movements. The exception might be for rPS, where virgin materials are skyrocketing on a zig-zag course set by styrene.

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 September 2017: Recycled ABS and PP compounds up / Few supply restrictions / Base material expensive

Prices for the majority of engineering recyclate materials remained stable in September even though there were some initial signs of movement to be seen here and there. The exceptions were recycled ABS and PP compounds, both of which rose slightly at the lower end of PIE's price range. Both products thus followed the upward trend of the respective primary materials.

With the end of the summer holidays, demand got off to a flying start. Ordering activity in nearly every segment – with automotive leading the field – was lively, especially with ABS and PC/ABS blends. Recycling companies also reported good availability of regrind base material. PC recyclate, which has been on the short side in the last few weeks, made some ground in this respect, even though supply is still low. Buyers with a reliable supply source can count themselves fortunate.

For October, a further upward trend is expected, at least with ABS. Styrene has become considerably more expensive and the increases announced by ABS producers usually run into three digits. Regrind material will presumably pay the price for this in the coming weeks. With the primary market largely stable, the other types are not expected to show any dynamic tendency one way or the other. Supply and demand should remain balanced and, up until the Christmas break, there is no reason for the situation to deteriorate.

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!