Price Reports September 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 September 2024: Prices for polymers plummet in the wake of precursor discounts / Demand remains weak / Imports put additional pressure on prices

PE: Western European PE prices moved in different directions in September. There was, however, a clearly distinguishable trend: producers who had called for extensive increases at the beginning of the month failed to push them through to the extent they had hoped for. Thwarted by the combined force of the EUR 25/t decline for ethylene and weak demand, producers had to make do with significantly lower hikes. Quotations for HDPE grades and EVA even fell. Overall, the supply situation in Europe was somewhat better than in previous months, particularly as some converters worked from stocks they had built up in summer and ordered only what they absolutely needed. In October, demand is unlikely to improve much. Combined with the latest decrease for the C2 reference in the first month of Q4 (down EUR 32.5/t), this means prices are expected to come under pressure in the coming weeks. Meanwhile, the strike by US dockworkers could affect HDPE imports. Overall, however, it appears likely that all contracts from European producers can be met.

PP: The price development in September turned out differently than expected. While initially there were signs of opposing trends from cheaper propylene on the one hand (contract down by EUR 30/t), and rising demand and thinning supply in Europe on the other, many force majeure notices were ultimately cancelled, and demand did not improve as much as hoped. Processors therefore tended to draw from their stocks over the course of the month, which ended up leading to discounts. Talcum and glass fibre reinforced compounds were the exception, as hardly any stocks had been built up for these. Demand is not expected to improve in October, either. Propylene was again fixed at a softer point (down by EUR 35/t) and – with only a few exceptions – plants in Europe are now running again, albeit at a reduced level. Supply therefore exceeds demand, which is expected to put pressure on PP prices. The first providers are already offering special conditions in order to sell large quantities. At the same time, annual negotiations are beginning, in which contracts are likely to become less important. The remaining volumes are being consolidated among fewer suppliers in order to achieve annual bonuses more reliably.

PVC: Despite the fact that the ethylene contract fell by EUR 25/t, the price of PVC base material continued to rise in September. Producers pushed through significant margin improvements despite the satisfactory supply situation for converters on the market. European production is still curtailed. Even after the holiday season came to an end, only a slight pickup in demand was registered, with basic demand still remaining at a low level. Many converters failed to attain their normal production levels again. Negotiations in the fourth quarter are set to be intense. Converters are expected to insist on a pro-rata share of the lower ethylene contract (EUR -32.50/t) being passed on. Given that the construction industry is still struggling, they see little opportunity to pass on the increasing cost of raw materials to their customers. This has also led to an erosion of their margins in recent months. Producers are holding out against this, however, citing the lack of imports due to the punitive tariffs. Their main concern is to improve margins. Negotiations are set to be tough in this tense environment, especially as annual talks for 2025 approach. No sign of a silver lining, which could indicate a rapid upturn in the construction industry, is evident on the horizon. Converters are thus likely to try and formulate their new contracts carefully.

Styrenics: The slight decline in the styrene reference in September (down EUR 8/t) was followed by minimal downward price adjustments for polystyrene, EPS, and ABS – if any at all. Prices often remained unchanged, especially at the beginning of the month, but then discounts of EUR 10/t or EUR 20/t predominated. As a result, agreements in September fluctuated more or less around the cost change. The producers’ emaciated margins did not leave scope for greater discounts, even if the recovery in demand after the holiday season was significantly weaker than hoped for. Additionally, rumours about more significant price reductions in October dampened the processors’ shopping mood. In fact, their gamble paid off – the styrene reference plummeted by EUR 202/t in October. Triple-digit discounts for polystyrene and EPS are therefore likely, even if producers could be trying to bolster their meagre margins by keeping part of the cost reduction. The fall in price for ABS could also be in the triple-digit range, even if the decline in composite costs is mitigated by less pronounced price movements for the other components, butadiene (rollover) and ACN (down EUR 28/t).

PET: The European PET market made an ominously calm impression in September 2024. Given that the end markets were still flat, buyers were particularly reluctant to make purchases while feedstock prices were falling. At the same time, price drops in Asia and North America were accompanied by significantly falling logistics costs on the world’s oceans, generating aggressive import offers. The PX reference plunged by EUR 105/t. Despite this, European producers managed to complete the few transactions that did take place with just moderate price reductions. The quiet month of August could have been the calm before the storm. Since July, the PX reference contract has fallen by EUR 170/t. The reductions so far granted for PET come nowhere close to reflecting this fall. Buyers at all levels are thus waiting for triple-digit concessions to provide them with an incentive to buy. This would not appear unrealistic given the weak end markets and the particularly inexpensive 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!

  Engineering thermoplastics September 2024: Clear trend in prices despite inconsistent movement / Further decline expected in October

Producers did everything they could to carry the rollover through September. With numerous grades on the Western European market, they were unable to hold on to their position. Business activity on the market was very sluggish and, if at all, producers were only able to sell their material if they complied with converters regarding pricing. Overall demand was simply too weak. It is therefore no surprise that producers made further cutbacks in output or let plants operate at a low level. Imports added to the existing pressure. 

Some converters reported a small revival after the end of the holiday period and the restart of their operations. The market was, however, generally characterised by problems in the automotive industry, with the mood correspondingly pessimistic.

The start of the fourth quarter is likely to see significant price cuts across the board. The projected downtrend is based on both persistently weak demand and the EUR 119/t decline in the benzene reference for October. Converters with quarterly contracts will likely want to finally have a piece of the low-price pie. PA is also set to witness further price cuts in October, and producers are consequently expected to continue running their plants at reduced utilisation rates. For converters, there are no recognisable impulses for a recovery of 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!

 Polyurethane feedstocks September 2024: Demand for TDI pushes prices significantly up / Rollovers everywhere else / Improvement in demand expected only in isolated cases

Overall, the automotive industry kept the total demand for PU precursors at a low level. There might be small improvements in some other purchasing sectors in the near future. However, no significant momentum is to be expected. 

The majority of prices for PU precursors showed a rollover in September 2024. In the case of MDI, good availability and weak demand nipped attempts to raise prices in the bud. Demand barely improved at the end of the summer holiday period. Producers are expected to again try and achieve higher prices on the market in the coming weeks. However, this is only likely to succeed for quarterly contracts, if at all, and then only to a limited extent. 

TDI was the exception – in the case of isocyanate, a bottleneck caused by logistics problems and supply difficulties reported by the producer oligopoly triggered a run on the material by processors, which was reflected in a significant price increase. However, none of the processors reported allocations in the PIE panel discussions – supply continued to appear normal. According to the PIE Price Team, the suggested bottleneck could only have been of minimal duration, if at all it occurred. 

In the coming weeks, imported material from Dow, among others, should further improve the supply situation, which indicates a rollover or slight discounts for monthly contracts.

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 2024: Resin prices trend down again / Demand remains poor / No major changes expected for glass fibres

In September, the long market and the still very weak demand mostly resulted in falling prices for the medium-reactive ortho resins covered by this report. The small decline in the cost of styrene did not play any role in price discussions. Only in the E&E segment were there occasional reports of a slight increase in sales, while automotive and construction remained – at least in part – at an extremely low level. 

The styrene contract for October crashed heavily, falling EUR 202/t. In a market that is still regarded as long, this is likely to bring about further price reductions. On top of that come declining spot market prices for phthalic and maleic anhydride.

The subdued overall mood was also reflected in the pricing for the glass fibre products. The majority of price agreements showed very little movement, in line with the unchanged market conditions. Only in a few cases were there moderate, but not generalisable, adjustments. PIE panellists are working on the assumption that there will be very few or even no changes – in some cases even up until 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!

 Standard recyclate September 2024: Prices remain mostly stable / Sluggish demand despite end of holidays / Little change likely in October

In September, there were only minor price movements for standard recyclates. This was due to the persistent slump in demand, which even lasted beyond the end of the summer holidays. Contrary to expectations that demand would increase because of seasonal factors, incoming orders were sparse.

It is currently unlikely that prices will trend up in October. Suppliers’ warehouses are well stocked and demand is simply not increasing. However, as recyclers’ margins are already at rock bottom, there should be little or no room for further discounts. Recyclers are at this point supported by largely stable purchasing costs.

The end of the beverage season is putting increasing pressure on the PET market. Suppliers were able to pass on increased costs for bottle waste, at least for lower price levels. But as the summer heat subsides, demand is likely to shrink even further. Quotations are thus likely to move downwards in 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 recyclate September 2024: Very weak demand despite price concessions / Recyclers’ stocks fill up / No prospect of improvement yet

By making what are mostly small concessions, recycling companies are doing their utmost to stimulate sales. The panel reported price changes ranging from a rollover to a decline of EUR 80/t. Nevertheless, demand remained below expectations. For this reason, recyclers’ stocks continued to grow despite the ongoing cutbacks in production. The reports from the German automotive industry led converters to calculate their demand even more thoroughly, with the result that they purchased only what they absolutely needed. 

In October, recyclers are expected to try and achieve price stability – despite the increasing pressure from imports and the continuing weakness in demand. Most probably, however, the only way this hope could be fulfilled is through a recovery in demand. On the converter side, the recent news from Volkswagen is resonating throughout the industry, so that many buyers are expecting darker clouds. And what about the usual stocking-up activities after the summer holidays? There are unfortunately very few signs of this or, at most, very cautious moves in this direction.

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!