Price Reports September 2023

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 2023: Prices bottom out across all types / Demand remains weak / PET market reports first line closures

PE: The production cutbacks and maintenance turnarounds in Europe have taken effect. The quantities of C2 available on the European market declined significantly, and the volume of imports also shrank, resulting in a balanced market – even if at a low level. With many types, producers were able to push through their increased costs, and in many cases, the rises were (well) above the increase in the C2 contract (up EUR 75/t in September). 

The latest price negotiations in October are likely to continue at an equally tough level because C2 has again gone up considerably this month by EUR 65/t. The balanced market will allow producers to also push through more than just the straight feedstock costs. Imports will once again exert little influence on the overall situation, and many European players are likely to say it is no longer worth ordering them. Demand from the customer industries (food packaging, construction, and automotive) is, however, very likely to remain weak. A real recovery is no longer to be expected before the end of the year. 

PP: The downslide in polypropylene prices bottomed out in September 2023, with quotations rebounding on the back of a EUR 60/t rise in the C3 contract and the noticeable improvement in supply issues. Demand remained sluggish, and in a market lacking drive, the few bright spots included converters replenishing inventories at the end of the summer vacation season or ordering early to get ahead of potential price increases. 

For October, the parameters are much the same: the monthly C3 contract added a further EUR 60/t, and the meanwhile balanced supply situation will allow producers to raise PP prices again at the beginning of the fourth quarter.

PVC: After PVC prices had moved in only one direction since April 2022 – namely downward – they turned upward again for the first time in September. The price of base S-PVC and PVC compounds went up, albeit only moderately. The increased ethylene costs (up EUR 75/t) were thus priced in on a pro-rata basis at least. Even though demand improved somewhat when the summer holidays came to an end, this by no means marked a fundamental change. The construction industry in particular is too deep in recession. Supply was sufficient even though production had been curtailed and fewer imports were coming into Europe.

In October too, producers are expected to make every effort to recoup at least half the ethylene costs. They should also be successful if less material is available on the market, such as for E-PVC pastes. This is expected to be the case following the recent outages and maintenance.

Styrenics: September saw a hike in European styrenics prices after having left this year’s lows behind a month earlier. Demand remained subdued – and as if there was a need to double down on this, business media reported another drop in the S&P Purchasing Managers’ Index for the Eurozone. The actual reason for the price increase of styrenics in September, however, was the strong increase of the SM reference (up EUR 170/t). While the styrene cost increase more or less acted as a guideline for EPS prices, the pricing for polystyrene and ABS varied widely. Those who bought from producers had to accept the fact that they were passing on (at least large parts of) the monomer change. In distribution, price increases turned out to be significantly lower, sometimes even reaching a rollover. This was particularly noticeable for PS and ABS injection moulding grades.

By now, there are already signs that October will see further price increases in Europe, as the styrene reference climbed further up (up EUR 60/t) and prices for the other ABS composites also trended up (butadiene up EUR 70/t, ACN up EUR 128/t). At least for PS and EPS, prices should thus come close to the year’s previous high reached in January.

PET: September 2023 could go down as a watershed month in the historical development of the European PET market. The still-prevailing weak demand prompted a producer in northwestern Europe to shut down one of its two major lines. At the same time, the company opened the floodgates of its warehouses to unleash the surging inventories that had built up over the past few months of weak sales. Special offers were thus available with reductions of up to EUR 80/t. That naturally undermined the efforts of the other producers to translate the increased PX costs into price hikes – especially since independent imports from Turkey were on offer at favourable prices. Ultimately, increases of between EUR 10/t and EUR 20/t were achieved for the remaining regular business transactions.  

Demand is not expected to pick up at all in October either. At the same time, PX prices are still pointing upwards. The noose around the production lines continues to tighten – the first plant shutdown in September could soon be followed by others. The adjustments to supply could, however, lead to moderate increases at least, despite the weak demand.

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 2023: First price increases emerge / More expensive feedstocks and imports expected to drive prices up further in October / Lack of significant impulses in demand

The increase of EUR 41/t in the European benzene contract for September was enough to bring the downward trend with engineering thermoplastic prices to a halt. In one or two cases, in fact, prices actually went up. Exceptions were POM, PMMA, and especially PA 6.6, where there was a further decline. 

The situation is expected to change only minimally in the coming weeks. As long as imports govern the market and demand remains weak, the European market will want lower prices – and will also get them. This is likely to be the case with PA 6.6, POM, and PMMA. 

Polycarbonate, PC/ABS blends, and PA 6, on the other hand, will not just hit the bottom due to more expensive precursors such as caprolactam and benzene (October: up EUR 232/t). Producers are pushing for significant increases, also because of the considerably more expensive imports. 

No significant changes are to be expected in any of the customer sectors in the coming weeks. The construction industry is still stagnating, while automotive and E&E do not see any possibility of recovery 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!

 Polyurethane feedstocks September 2023: Discounts drive market / Trough has been reached / TDI could soon see renewed markups despite low demand

Despite a noticeably firmer benzene contract (up by EUR 41 to EUR 841/t), prices for isocyanates fell. The main reason for this was continued weak demand. TDI prices have shown a clear deceleration in downward movement since mid-September.

In the coming weeks, the slight stock replenishment effects that were seen recently will stabilise. However, demand is likely to remain sluggish and unsatisfactory overall.

The trough appears to have been reached. MDI as well as polyols are likely to see a rollover or only slight price changes in October.

For TDI, on the other hand, the situation is somewhat different: the continuing force majeure in Europe is reducing availability and could provide producers with sufficient justification for price increases. In addition, imports by European producers from their plants in China and the US are likely to be more meagre and only include quantities necessary for contract fulfilment.

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 2023: Resin prices bottom out / Costly styrene likely the driver / Glass fibre little changed / Demand sees scant improvement

Bucking the sometimes steep, persistently upward trend for principal feedstock styrene seen since August, resin prices continued pointing downward in September. 

On average, the decline was modest, but for larger orders rebates could easily reach triple-digit dimensions. Once again, the divergent directions reflected the soft demand. Prices for glass fibre products continued largely unchanged. Only minor movements were spotted here and there.

It remains to be seen whether the downward trend in resin prices observed since mid-2022 will hold up much longer. Movements seen up to now suggest that the bottom has been reached. 

Though the styrene contract was again fixed higher, after the steep upward momentum of recent months the rise was capped at EUR 60/t. The market anticipates a gentle firming of demand, which potentially could lead to a minor upswing in resin prices.

The few currently visible encouraging signs provide scant orientation for the market generally. Hopes of rising demand after the summer holidays were quickly dashed, and demand has dropped back to its earlier level. At present, a change for the better is not in sight.

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 2023: Prices approaching the bottom / Only rPET still in free fall / Isolated slight increases possible next month with a more balanced market

The downward trend in standard recyclates in Europe lost considerable momentum in September 2023, and prices for some materials have seemingly even bottomed out by now. While demand mostly remained below expectations, things were less grievous than in the previous month as some players restocked. Prices were also supported by firmer virgin material prices. 

The only significant exception to this general development was rPET. The still-lacklustre demand teamed up with low-cost imports from Asia and caused a further drop in prices. In the next month, rPET prices are likely to come under strong pressure again due to the market situation…

…unlike the other recyclates. Duly conceded, slight price reductions are still possible for rPP. But for rLDPE and rHDPE, all signs and portents point towards largely stable prices. Not only do the recyclers lack any leeway for further price reductions, but an increasingly balanced supply situation also means that suppliers can probably obtain slight premiums for at least some materials. 

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 2023: Price reductions of up to EUR 500/t / Further falls likely in October / Imports keep supply normal / No improvement expected for weak order situation

Demand did not stabilise in September as hoped. On the contrary, it slumped further. Added to this was a larger volume of cheap recyclate imports into Europe. In some areas, the market was also attacked by very cheap virgin material from the US and Far East. Against this background, European recyclers were left with no alternative but to also lower their prices further in order to be able to make any sales at all. 

Despite the sometimes-considerable reductions, prices have probably not yet bottomed out. In October, they are not likely to fall as much as in the previous month, but could still drop significantly. 

Because of the still-weak demand, many European recyclers are thinking more intensively about closing down extrusion lines and introducing short-time working. For converters, however, nothing much is likely to change as regards the good supply situation, thanks to the flood of imports. 

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!