Price Reports September 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!

  Standard thermoplastics September 2021: Polyolefin price hikes stall / PVC moves higher, could rise further / PS decline atypical for styrenics / Prices for EPS, ABS expected to increase in October / PET edges higher

PE: September started with producers hoping for higher prices. However, because these hopes found little favour with converters, they quickly vanished into thin air. The European market at present is characterised by a general feeling of uncertainty. Stockpiling has now become a thing of the past, and demand from consumers is modest. With many grades, supply is still tight even though the arrival of some imports has improved the overall situation. Contract agreements were mostly fulfilled satisfactorily, and a few converters also found additional volumes for new projects. Massive imports from overseas are nevertheless not expected in the near future, so most converters are dependent on European production. Nevertheless, most lines in Europe are producing at full capacity, which means that additional volumes over and above the contracted quantities are seldom available. The market as a whole is expected to see prices falling, also because many buyers are holding back with their purchasing activity. Another reason is that prices seem to have reached a peak that many converters are no longer willing to accept. Pipe grades have seen a reduction for the first time in several months. This was due not only to the slightly improved availability, but above all to the restraint shown by many builders. They have also been openly threatening converters to shift orders away from plastics to concrete. The market for EVA is still completely dry. Thus, at the lower end of the range, prices rose enormously, and even at the upper end, the hikes were quite significant.

PP: Since December 2020, the C3 price had known only one direction, and that was up. In September, however, the first tender signs of a turnaround were spotted, even if the EUR 5/t decrease was only moderate. Thus, in view of the improved supply and the increasing resistance of buyers to pay ever higher prices, producers were unable to push through their notions on price. On the contrary, in some market segments prices came down. One producer upset the balance by tossing large volumes of unspecified material into the market. European production volumes stabilised somewhat in September. At the same time, more Asian imports came onto the market, with most of this landing in Italy and the Benelux region. One of the largest major producers removed the force majeure that was in place for the past year. The steadily weakening demand from the automotive industry is clouding the outlook for converters. Over the course of September, many carmakers began curbing output and, accordingly, reducing orders. In consequence, processors saw no other option than to build inventories. In the white goods sector, the situation was no better. Here, too, the chip shortage reduced output of household appliances. If the automotive sector continues to create negative headlines, producers will have difficulty holding their current price levels.

PVC: Nothing has changed over the past few months as far as basic conditions are concerned. Tight availability coupled with a high level of demand pushed prices up even further in September 2021. And the C2 contract (down EUR 8/t) has played only a very subordinate role in pricing for a long time. Unplanned outages further restricted the supply of base PVC, and the hoped-for imports were largely absent. It was thus all the more noticeable on the market that orders from customers in Southern Europe picked up again after the holiday period and additional volumes were exported. The price of compounds also rose again, with the hikes mainly representing additional costs of the scarce base material. As far as additives were concerned, September provided a certain amount of breathing space. PVC prices are heading for further increases in October, since planned maintenance will be reducing supplies still further. This would then be the sixteenth month in succession in which prices have moved upward. It is thus not surprising that records are being continually broken. A new approach that has emerged, however, is one key supplier’s planned introduction of a not-inconsiderable energy surcharge, in addition to the PVC hikes. Compounds will also undergo a price increase in the wake of base PVC, particularly since additives will similarly play a role in pushing prices up.

Styrenics: Only in the case of PS, the drop in the styrene reference in September (down EUR 91/t) was passed on to any significant extent, whereas the recent cost increase of the additive butadiene (up EUR 90/t) reduced the extent of the price reduction for the impact-resistant material. In the case of EPS white, the SM cost reduction was priced in only to a small extent or almost not at all, as was the case with EPS grey and ABS. The main reason for this is the supply situation. The availability of ABS has been underwhelming for many months due to the far-too-small volume of imports from Asia, and bottlenecks are also characterising the market for EPS. Furthermore, there are no signs of an improving supply situation for ABS and EPS in the weeks to come. Quite the contrary: the situation is likely to worsen in October. Against this backdrop, premiums are to be expected for the first month of Q4, at least for these two materials, which will be higher than the October increase in the SM reference (up EUR 23/t) and the minimal increase in ABS composite costs (SM up 23, butadiene down 75, ACN up 31).

PET: Rather surprisingly, European PET prices increased in September 2021. While “only” moderate increases ultimately ensued, the relative stability of prices for precursor products prompted expectations of more marginal movements. Supplies were limited to European production, with imports still scarce and empty spot markets. Individual shortfalls in production then made themselves felt, since demand turned out to be better than expected. Producers were subsequently able to channel their increased costs, brought about by the significant rise in energy prices, directly into sales revenue. PX is currently trending stable to slightly down. The market situation would also not suggest that any major price jumps are imminent in October. The development in energy costs remains uncertain, however. The increases have now reached a point where they are relevant for chemicals and plastics too. This could have a further impact, as it did in September.

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 September 2021: Some peak prices capped / Glass fibres, additives short / Significant increases expected from rise in energy, transport costs

The majority of prices for engineering thermoplastics were protected in September by longer-term agreements. At the same time, the high prices and the shortage of a number of additives and glass fibres kept compound prices stable despite sometimes coming under pressure. Polycarbonate, PC/ABS blends and polyamide 6 natural grades declined slightly at the top of the range – especially also because of the sharp drop in orders from the automotive industry.

While some September orders had already been postponed to October, the increasing number of production line stoppages in the automotive industry is further aggravating the already precarious situation. The market dynamic will affect price development differently in the coming weeks. Buyers from car producers will presumably experience larger concessions as ordering activity continues to shrink. On the other hand, as far as other industries such as construction and E&E are concerned, there will be little slowing down to be seen.

The bitter pill of a price increase will not leave all converters unscathed. Despite improved margins because of low raw material costs, producers will try to push through structural cost increases for energy and logistics, which will result in another upturn for the majority of materials. In view of the slow ordering in the automotive industry, it is nevertheless questionable whether any attempts to raise prices will be successful.

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 September 2021: TDI drops significantly for second time / MDI polymer still suffers from low supply / Rollover or falling prices likely in October

It has become apparent that the peak for isocyanate prices has been reached. Although the trend for MDI polymer was somewhat firmer due to the lower supply, the pure sister product – with a premium that seems to be settling at EUR 300/t – as well as TDI, which is in low demand, already showed a rollover or even dropped fairly significantly. The persistently high price of MDI polymer is attracting speculators. A kind of grey market for Western European standard grades is beginning to establish itself, but the quantities are only available at horrendous prices, which are not reflected in the PIE panel.

Imports from the US have become a distant memory after the storms. Allocations were commonplace for both MDI types. Nevertheless, PIE expects a rollover in October: processors are starting to hold back on purchases – also because of the approaching end of the year – although the insulation season in construction will probably continue in full swing for a few more weeks.

In line with the declining TDI prices, soft polyols also gave way. However, the achieved purchase price was strongly dependent on timing: while many of those who finalised their contracts at the end of August only received slight discounts, the material could be had for up to EUR 140/t less towards the beginning of September. In addition to this, there was a regional difference: the reductions were more pronounced in Eastern Europe than in the west of the continent.

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 September 2021: Resins roll over / Steep rises for reinforcement / Slight firming likely in October / Glass-fibre bottlenecks dog production

The steep drop in the September contract for principal feedstock styrene did not make its influence felt immediately. Prices for medium reactive ortho resins rolled over, due mainly to the strong demand for propylene glycol that drove its price upward. Large buyers reported that some peaks were shaved off, although there wasn’t yet enough visibility to know whether this was part of a general trend.

Most styrenics plants were operating again at full run in September but propylene glycol feedstock was hard to come by. For this reason, the decline in the September styrene monomer contract is unlikely to influence resins prices. The key chemical is tight, there are few imports in the market, and producers of anti-freeze and cosmetics are competing for supply.

In particular, the high costs associated with energy-intensive production and logistics drove prices for all glass-fibre types further up. In contrast to the usual situation, even standard grades were no exception. Glass-fibre products of all types were the narrowest bottleneck for the thermoset sector. After already facing hikes starting in mid-September, some converters and distributors might have to face additional increases of up to 15% more.

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 September 2021: Only rPP and rPET increase significantly / For rPE costs passed on at best / Lively demand due to sustainability projects / Price momentum continues to weaken in October

The recyclates market showed a mixed picture in September 2021. For the most part, recyclers could only achieve significant price increases for rPET and rPP, where input materials are fiercely contested, and supply is limited accordingly. Things were much quieter on the rLDPE, rHDPE and rPS front, where the purchase of input materials generally caused fewer problems. In the case of rPE, there even were sufficient volumes available to tackle new customer projects, unlike before.

The price momentum should continue to erode over the next few weeks. Even rPP and rPET are likely to have reached their peak by now – here too, seasonal effects are contributing to calmer waters. Market observers expect further price increases for rLDPE film natural and translucent grades, if any at all.

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 September 2021: Increases for ABS, PC, POM / Additional bottleneck for reinforced types / Signs of demand easing / Upward price trend gradually flattening

No primary material, no scrap. The calculation is that simple. Although the shortage of base material led to a continuing price increase for some recyclates in September, polyamides in particular have reached a level where the price likely cannot rise any further or only very slightly. Additionally, ordering activity was in some cases very slow because availability was tight and stocks are mostly empty. It could be said that collector’s prices are currently paid for every kilogram. In the next few weeks, small increases are therefore only expected with POM and polycarbonate.

On the demand side, full order books are common for the construction, E&E and white goods sectors, while requests from carmakers are catastrophically low. At the same time, however, converters are increasingly distancing themselves from the secondary market, which they regard as an increasingly unreliable supply channel. Instead, they are focusing on the primary market, where prices are equally high but where availability tends to be better. Glass fibre-reinforced types are being hit on two fronts from a lack of both base and reinforcing materials. The additional incorporation of glass fibres is almost impossible, and price increases of at least 10% for them have been announced.

Particularly in the building sector, converters are no longer buying as much as they did because the end of the season is approaching. Uncertain is how business will develop in the next few weeks because, in this industry too, there tends to be an order backlog that has to be worked off. There is a sense of increasing caution as lower prices are expected in the spring. Overall, ordering activity will calm down because there are still few signs of hope on the horizon for the automotive industry.

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!