Price Reports Abstract January 2013
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The following information is provided by Plastics Information Europe. 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 entire versions of the following reports, go to www.pieweb.com and sign up for a 48-hour free trial! |
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Articles: January 2013 |
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Standards Thermoplastics |
Engineering Recyclate |
Standard Thermoplastics in January 2013: Price hikes come to a halt in mid-month / Producers still net reasonable margin gains / Slow start to demand / February likely similar
The European markets for standard thermoplastics started the new year slowly and on a rather indecisive note. Although PE producers swaggered into the arena with calls for triple-digit increases despite the stagnant cost base, notations generally settled somewhere between EUR 20/t and EUR 40/t higher. Even that provided them with reasonable margin gains. The picture was similar in the C3 chain, where propylene declined again slightly, by around EUR 13/t. With price hikes of around EUR 30/t, PP producers still managed to improve their margins. PVC producers, who really needed the additional margin padding, were not quite so successful, winning increases of only EUR 10-15/t for the base material. With hikes of EUR 60/t, PS suppliers were just about able to cover the rise in styrene monomer (SM) costs, but EPS producers did not even manage that.Despite a number of production problems, output cuts and export activity, supply nevertheless tended towards a slight surplus. This was also an indication of sluggish business generally, resulting from a combination of extended Christmas holidays at converters, lethargic end-markets, high prices and cautious inventory management. Over the course of the month, there were occasional signs of business picking up but there was no real cause to break out the champagne.
With a rollover for ethylene, a minor increase of EUR 10/t for propylene and a further decline of EUR 40/t in the SM contract reference price, the dice have been cast for polymer prices in February. Although polyolefin producers still have unrealised hikes of EUR 70/t on the agenda and styrenics producers will try to improve their margins by pushing through a rollover, they are unlikely to be fully successful unless demand unexpectedly picks up.
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 in January 2013: New year begins on a subdued note / Despite expensive benzene, ABS and PC barely move / PA, POM and PMMA prices down / Little risk of hikes, except for PP
Despite the widely expected revival in ordering activity at the beginning of the year, the supply situation was balanced to good. The production cutbacks and closures introduced by most producers over the holidays seldom led to supply bottlenecks. Imports also played a significant role where POM and PMMA were concerned.
After inventories had been virtually swept clean at the end of last year, the main order of the day in January was to replenish the depleted stocks. Most volumes went towards the automotive and E&E segments.
February’s benzene contract fell by a surprising EUR 113/t to EUR 1,040/t. Attempting to put things in perspective, producers point out that the feedstock remains very high, above the EUR 1,000/t level. Heavily affected by the cost of benzene, PC producers have for some time already been pushing for hikes of EUR 250/t, and have now been joined by a PA 6 producer seeking a rise of EUR 200/t. In this field, the argument goes, the wave of price increases – via caprolactam and virgin polyamide 6 resin – has only just begun. Despite the EUR 40/t fall in the cost of styrene, ABS producers are pushing for a rollover, and suppliers of PA 6.6, POM and PP compounds will likely do the same.
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!
PET January 2013: Passing on cost rises still problematic / Global oversupply batters Europe / Cold weather further depresses slack off-season demand / Perspectives still dim
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 in January 2013: First hike plans successfully parried / MDI and polyols in a weak rollover / TDI firmer / Supply adequate to demand / Q1 price rounds are still open
In January, European producers of polyurethane starting materials pulled their plans for hikes from Q4 2012 out of the drawer and presented them again – without any noticeable resonance. While demand was stronger than in December, it was not strong enough to warrant higher prices. In fact, for TDI, the EUR 10/t gain producers netted in response to their calls for EUR 200/t was rather paltry. For MDI and polyols they had already shaved the top off their hike targets but demand was robust enough to support a weak rollover.
For the most part, supply was adequate to long, so that January deliveries could be made on time. As expected, converters needed to reorder after drawing down inventories at the end of last year. Demand could not exactly be described as overwhelming, but in some segments ordering was lively. The restart of automotive production following the holiday break boosted demand for TDI. The cold weather kept orders for building grades to a minimum, however.
Except in North America, price increases were not generally a topic in the polyols segment. The market is undoubtedly waiting for a signal from the ongoing price negotiations for long-term contracts. Here, producers are standing their ground in view of the continuously rising aromatics notations. If any price movement is seen in quarterly contracts in January, monthly prices will also be affected, especially as in the course of the quarter PU feedstocks will surely be affected by higher aromatics prices.
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 January 2013: Resins see slight gains / Producers seek across-the-board hikes / Demand boosted by inventory refilling / Direct roving loses more momentum
At the beginning of 2013, prices for medium-reactive ortho resins made slight gains in reaction to higher feedstock costs. Even if demand was slightly higher in January compared to December, the long supply situation prevented any major price increases. Citing higher costs, producers have announced hikes of EUR 50-120/t for February deliveries. However, the EUR 40/t decline in the monthly contract for styrene monomer (SM), after a rise of EUR 60/t in January, will prevent this, converters believe.
In January, the cost curve for resins feedstocks did point upward. Although propylene, the starting material for monopropylene gylcol, was priced EUR 13/t lower, the EUR 60/t increase for SM padded the bill substantially. January contract prices for phthalic acid anhydride (PA) and maleic acid anhydride (MA) were not available at press time. According to reports, one MA producer will keep a plant off line due to the high cost of key feedstock benzene. Notations for chopped strand mats rolled over from December into January. Some buyers of direct roving were able to negotiate lower prices for long-term supply agreements.
The PIE polymer price index “Composites Plastixx" for composites and glass fibre reinforcements in January showed a minimal decline of 1.44 points to 1,201.82 points.
Developments in individual markets were mostly positive. In the automotive sector, Gurit announced that it had received a major contract from an Italian OEM. Quantum received new orders for CNG tanks. Market research group Visiongain estimates the global market for automotive composites to be worth USD 8.85 bn and sees further potential in the trend toward lighter weight vehicles. Daimler has announced massive job cuts in production of commercial vehicles, for the most part in North America, but also in Germany.
In the aviation market, Boeing reported record sales for 2012 and expressed confidence about business in 2013. The company did not shed any light on the technology problems with its “Dreamliner” airplane, however. In boating, Beneteau said it will be seeking worldwide growth expansion this year. It believes the weakening of the boating sector in Europe has bottomed out.
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 January 2013: Neater rLDPE moves up with virgin material / rHDPE, rPP and rPS firm / Restocking of LDPE regrind slower than expected / Base material prices rise
In Europe’s German-speaking countries, the market for standard recyclate reacted in January to the rising price trend in the primary sector with upward tendencies for neater material and transparent film. There was no significant overall price movement, however. The less transparent film grades remained stable with some slight declines, while rLDPE moulding compounds lost EUR 20/t due to a lack of demand from the building sector. HDPE, PP and HIPS recyclate rolled over. With input costs rising and pricing flat, margins suffered.
After the Christmas break, recyclers began refilling, which led to strong increases in demand for all products except rLDPE. Deliveries could be made mostly on time, even if some production lines only returned to work in the second week of January.
Demand was driven mainly by brisk ordering of rHDPE, rPP and rHIPS from as far away as Turkey and North Africa. Demand for rLDPE was more subdued. Driven by fears that the high prices for virgin polymer could propel procurement prices, recyclers told PIE they would increase their own prices in February, by as much as EUR 50/t. As the season for building and garden products is close to beginning, they could see some success.
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 January 2013: Notations mostly firm as new year gets underway / rPA sheds a few feathers / Inventory top-ups lead to large volume sales / Primary market surge could engulf secondary materials, too
Shortly after having passed their end-of-year accounting balance, customers once again placed plentiful orders with engineering regrind producers. While it was still unclear in January 2013 whether primary ABS and PC producers would succeed at pushing through hikes, justified by poor margins and rising costs, the on-going negotiations firmed the prices recyclers paid for their scrap. As a result, notations for rABS, rPC and rPC/ABS rolled over into January. By comparison, the reduced price of some primary PA grades afforded more scope for negotiations, and several recyclers had to grant rebates, ranging up to EUR 20/t for reinforced rPA6 and rPA 6.6 grades, for their regrind material. rPOM notations remained firm as did those of rPP compounds – the latter backed by rising primary notations.
Although numerous regrind lines only resumed operation after 6 January, supply mostly was balanced to long as regrinders were largely able to meet their customers’ rising demand in a timely fashion. After the end-of-year stocktaking had seen customers run their inventories down, they began placing solid orders for recyclate again as January got underway. However, rather than serving as an indication of a boom in demand, the volumes mostly went towards boosting their stocks and providing a production buffer.
Recyclers are carefully eyeing the on-going Q1 negotiations for primary ABS and PC prices, which have been accompanied by calls for three-digit price hikes. If producers manage to realise these increases, scrap prices could soon follow suit, they fear. Not surprisingly, the companies PIE spoke to were adamant about pushing through a rollover in February, adding that there might even be room for upward adjustment. With no available alternatives, regrinders will have little choice but to follow a sideways price line.
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!
