Price Reports September 2018
|
To read entire versions of the following reports, go to www.pieweb.com and sign up for a 48-hour free trial! |
 |
Articles: September 2018 |
|
|
Standards Thermoplastics |
|
Standard Thermoplastics September 2018: Weak demand noticeably subdues polyolefins / PE falls / Styrenics follow SM increase / Uncertainty with PX continues to propel PET / October to witness stabilisation
PE: The European PE markets never really got going in October either. Although demand picked up a little compared with the prior month, it was still disappointing for producers despite the increased number of call-offs. Other factors played an increasing role, such as the rising volume of C2 produced from US ethane, offers from new facilities in North America and turbulence due to global trade conflicts. There was even a surplus with some grades, which meant that the best producers could do was to match the rollover in the C2 reference. HDPE and LLDPE almost always ended up with a price reduction. The C2 reference for October remained contentious for a long time. Only on 1 October did the parties agree on a minor EUR 10/t increase. This will support producers’ efforts to consolidate prices. The end markets currently seem to be somewhat tired, which does not make demand seem very sustainable.
PP: Except for the homopolymer injection moulding grades, PP standard grades were mostly sold at last month’s prices in September. Suppliers then had to take the next margin loss due to subdued demand, as the C3 reference price had risen slightly. Things did not go particularly well with compounds either. Only C3-oriented business showed increasing prices. The mood remained gloomy, especially in the automotive industry. The cost trend for October shows a broad uptrend, and producers have a strong incentive to raise their prices. Despite demand staying subdued, moderate hikes could occur.
PVC: September was calm on the European PVC market. Many contracts were fixed with a rollover in light of the neutral development of the C2 reference. Some contracts were also concluded with a slight price reduction, depending on the contract configuration. For the higher K-value grades, a reduction of EUR 5/t predominated. Producers are likely to try and pass on half of the EUR 10/t increase in the ethylene reference contract. With demand being weak, processors are likely to put up some resistance.
Styrenics: In Western Europe, styrenics prices had to pay tribute to the higher SM reference in September. However, increases often did not reach the full cost change. Speculation about lower prices in October dampened demand, leading to several suppliers lowering their increases. This was noticeable in the distribution of polystyrene and ABS, where mixed calculations with existing stocks were possible. European ABS suppliers also felt more pressure from low-cost imports from Asia. The SM reference is now at EUR 1,310/t and likely to set the course for prices in October – its decline will probably bring down styrenics prices. The extent to which processors regard this as a purchase opportunity will depend on price expectations for October.
PET: The uncertainties on the European and global PET markets continued into September 2018. With a balanced market, disquiet resulted from the turbulence with the main basic product. Exploding PX prices in China sent shockwaves to Europe too. A first lead contract was concluded with a EUR 220/t hike but confirmation by the second contract is still outstanding at the end of September. After falling for a while, PET spot prices proceeded to rise again. The monthly contracts for small to medium volumes reported by PIE showed a spread from rollovers to hikes of up to EUR 60/t. Things are set to remain unchanged in October. Suppliers are demanding higher prices in light of the cost explosion. Falling demand will, however, most likely impose limits on the price hikes. The upward pressure is set to remain.
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 2018: Upturn largely comes to standstill / Weakness of auto industry clouds producers' prospects / Easing of tension with PMMA / Situation with PA 6.6 and PBT still tense
Prices on the European markets for engineering thermoplastics took a breather in September. In many areas, the quarterly prices had been implemented early for the monthly deals so that there was little pressure for changes in the final month of Q3. At the same time, it became clear that demand after the marked summer lull would not recover anywhere as quickly as producers had hoped. Instead, stagnation in the automotive industry can no longer be ignored, and is pushing more into the foreground while putting a damper on prices.
Against this background, last month's prices were mostly carried over, even on the still extremely tight PA 6.6 market. With PMMA, players at last experienced some of the expected relief. In the commodity-related sectors, PP compound producers were hesitant about factoring in the cost increase. In the same way, ABS prices saw only about half the rise in the cost mix.
In October, the weakness of the auto industry in Germany is again likely to affect demand. As a result, the basic upward drive on PBT and PA 6.6 will be limited. The quarterly agreements here are still being contested and are far from settled. With PMMA, more air could escape than before, and with all other products the discussions are heading close to the rollover line. ABS will significantly fall under the pressure of the renewed decline in the cost of 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!
Polyurethane Feedstocks September 2018: Further sharp drops for crude MDI and TDI / Demand lagging behind expectations / Marked volatility for TDI in October / MDI grades set to calm down
Uneven, yet surprisingly clear price reductions predominated for polymeric MDI in the first half of September in Western Europe. Purchasers reported EUR 115/t reductions on average. As far as MDI monomer is concerned, however, the high-altitude flight is gradually coming to an end. After the pronounced movements of the past few months, a weak rollover resulted.
Despite firming notations for precursor toluene, the price of TDI fell again, with an average drop of EUR 180/t. At the topmost level, isocyanate gave way by almost EUR 250/t. The EUR 3,000/t mark is now moving within the reach of small purchasers too.
Overall, demand remained rather weak for the season. For TDI, this was especially the case in France and southern Europe.
In October, high price volatility is expected for TDI in general, together with variable prices in individual regions in Europe. However, the downward trend is set to continue.
For the MDI grades, the diverging trends to date will most likely come to a standstill. While a plateau is slowly emerging for pure MDI, the ongoing price reductions for polymeric MDI on the Asian and Middle Eastern markets are exerting further pressure on the price structure in Europe, too. As demand is picking up again, however, prices will no doubt be bottoming out soon.
Since processors have a certain amount of catching up to do, the autumn holidays are unlikely to greatly influence demand, especially since October is generally a brisk month. The past price turbulence could prompt processors to adopt a wait-and-see attitude in the case of TDI at least.
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 2018: Ortho resins following styrene upswing / Downward movement expected again in October / Demand increasing only sluggishly / Glass fibre products unchanged
With European demand picking up after the holiday season and some uncertainty prevailing on the market, medium-reactive ortho resin prices rose somewhat more than had been expected in September. Resins were also responding to the clear increase in the styrene reference at the start of the month. With availability at a normal level, demand picked up as usual after the holidays but order activity remained behind the figures in 2017.
After the considerable fall in the price of styrene at the start of October, resins are set to rapidly follow suit. However, rising demand should curb the reductions that are expected. The two other precursors, phthalic acid anhydride (PA) and maleic acid anhydride (MA), have shown little movement to date. A strong rollover resulted for PA. With MA, prices for Q4 agreements are still lying far apart from each other.
No movements are foreseeable in the glass fibre segment at the moment. This calm period could even last until 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!
Standard Recyclate September 2018: Mixed trends / Slight oversupply exerts pressure on rPP homo and rLDPE prices / Significant hikes on clear rPET / Upward potential for a few polymers in October
Standard recyclate prices showed a mixed picture in September. For rLDPE and rPP homo, recyclers bowed to the oversupply trend and capped some peak prices. Prices of rPET were propelled upwards by strong demand. Recycled PET flakes and rHDPE pipe grades also recorded impacts.
After the holiday period ended in August, recycling systems were quickly put back into normal operation. Demand also picked up again for seasonal reasons, with positive stimuli coming from the construction, automotive and beverage sectors. With rLDPE, exports to Asia supplemented a restrained demand in Europe.
Most notations are expected to remain stable in October. Both rPET and rHDPE will remain exceptions to this. The upward trend for these two polymer types is likely to continue in October. A slight rise also seems possible for rPP copo.
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 2018: General rollover in September / Upcoming hikes for polyamides set to also push up recyclates / Strong production month expected
For all the recycled plastics reported on, the replenishment effect after the summer break proved to be too weak to trigger price hikes in Western Europe. Several systems that had been offline for maintenance were successively brought onto the market again. As a result, supply ran essentially at a normal level. Recyclers generally had sufficient production waste at their disposal – with the exception of the curtailments at the usual suspects. After demand had stalled in the customary manner during the holiday season, order activity picked up comparatively quickly in September.
This calm situation is not set to continue in October, however, since this is a strong production month, with the exception of German Unity Day on 3 October. Significant price increases have been announced for PA 6 and PA 6.6 primary materials in some cases. If these are actually implemented, the higher prices should also impact the corresponding recyclate prices. The uptrend is likely to be delayed somewhat for rPA 6.6 – most likely until November.
It still remains to be seen whether rPOM will follow suit. The slowly but steadily rising cost of production waste has been nibbling at recyclate manufacturers’ margins for months, which is at least increasing the pressure at this point.
A downward trend is emerging for PC and, in some cases, for PC/ABS blends too. In the primary sector, buyers will demand discounts, and a partial spillover into the recyclate sector cannot be excluded.
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!
