Price Reports Abstract May 2013
|
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! |
 |
Articles: May 2013 |
|
|
Standards Thermoplastics |
Engineering Recyclate |
Standard Thermoplastics May 2013: Producers hang onto some of their cost relief / Hopes of turnaround unfulfilled / Bottoming out points the way to balanced market / Hikes in June likely
While European producers of standard thermoplastics may not have been able to halt the falling prices in May, in many cases, they at least stopped the erosion of their margins. However, hopes that the upswing on the spot market, coupled with higher feedstock notations, would lend momentum to polyolefin contract prices were dashed by the unseasonably cold and wet weather in many parts of Europe. With demand still sluggish, demand from the end markets, triggered by the bottoming-out of prices, was the only thing that kept notations from crumbling. It was not enough to stimulate an upturn, however.Though the contract notation for ethylene was down EUR 100/t in May against April, PE producers rarely had to pass on the full cost reduction. In most cases, they succeeded in limiting concessions to EUR 75-80/t. PP developments were similar. The EUR 80/t fall in the May propylene contract led to rebates of EUR 70-75/t for the polymer. By holding concessions to no more than of EUR 40/t, PVC producers were able to retain some of their EUR 50/t cost advantage to improve margins. Styrenics producers had to pass on the full but rather insignificant EUR 11/t decline in the cost of SM.
In the second half of the month, the continuing production cuts began to make themselves felt. Producers had trouble coping with the rising wave of orders placed when prices began to drop. Additional volumes could be supplied only in niche applications, and orders were often rejected. Yet, supply was generally long enough to meet the actual demand.
Key markets such as construction and agriculture were lively in May but business was still below the normal seasonal level. Still, the belief that prices had bottomed out provided a valuable stimulus for demand. As the month progressed, it became more difficult – or more expensive – for converters to stock up.
With the June contract for ethylene up EUR 5/t, propylene up EUR 15/t and SM up EUR 14/t, feedstocks could be seen as in a strong rollover. Prepared to seize the chance to bolster sagging margins, polymer producers have announced price hikes – for PE of up to EUR 100/t, for PP of up to EUR 70/t and for PVC of up to EUR 40/t. Styrenics producers are still keeping their cards close to their chest, but will surely also seek increases – if not now, when else, the thinking goes. If in June, as widely hoped, better weather finally lifts demand at least back to its normal level, the somewhat precarious supply situation might lead to small price hikes. Industries which rely on weather conditions, such as building, horticulture, agriculture and beverages, could be particularly hard hit.
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 May 2013: Little movement on the price front / Hoped-for stimulus fails to materialise / Supply adequate despite production cutbacks / Stable costs likely to produce upswing in full working month of June
Overall, supply was adequate. There was a tendency to bottlenecks with PA 6.6, and, to a lesser extent, with PBT. Demand generally remained below expectations. The key automotive segment still looks tired, but the petrochemical markets managed to get a grip on themselves again in May and are tending slightly upward.
Despite good forecasts, many producers are cautious about returning to normal production. At the same time, they hope the public holiday-free month of June will fulfil the hopes of an upswing that disappointingly failed to materialise in May. Looking at the market as a whole, it is quite possible that the free negotiations could see price hikes, but they will be dampened by the ongoing quarterly agreements.
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 May 2013: Only sluggish movement in May / Unseasonably cold weather dampens demand / Capacity cuts slow to grip / PX rolls over / Downward potential for notations
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 May 2013: Solid benzene price stabilises MDI / TDI and Polyole down / Public holidays slow down orders / Demand below expectations / Increase effect Upstream
The volatility of notations for their own input materials made life difficult in May for producers of polyurethane feedstocks who had announced increases for their prices in Q2. While the propylene reference contract declined by EUR 80/t and the ethylene contract by EUR 100/t, benzene notations shot up by EUR 64/t, recouping all of the losses from a month earlier. The toluene price came down by EUR 12/t. Selling prices for polymeric MDI rolled over despite the higher cost of benzene, while the PIE range for the pure grade rose EUR 25/t. TDI and polyols lost as much as EUR 50-55/t amid lower upstream costs, market oversupply and price wars.
The many public holidays and extra days off taken by converters in May pressured demand for PU feedstocks as did buyers holding back on ordering in expectation of falling prices. This and that both MDI and TDI plants previously down for maintenance were once again onstream, meant there was no noticeable bottlenecks. Demand from the building industry for polymeric MDI and polyols was higher than in April but still below the usual May level. Demand for TDI and flexible polyols was pressured by the automotive industry’s weakness.
In the first two-thirds of May, spot naphtha notations added more than 4%, and benzene remained on its high plateau. If this trend continues, price increases for PU feedstocks will hardly be avoidable in June as producers will leverage the argument of higher costs to improve their margins in the final month of Q2. The expected lively demand in the long month will at least allow low prices to be brought up to scratch.
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 May 2013: Ortho resins still softening / Demand seasonally strong / Feedstocks higher / Slight further easing possible in June / Glass fibre products unchanged
As expected, the medium-reactive ortho resins covered in this report gave up more ground in May. On the back of sharp declines for feedstocks propylene and styrene, notations weakened by EUR 20-40/t. Following the trend seen in May, both the top and the bottom ends of the PIE range deteriorating by EU 20/t. The occasional low-priced spot deals pressured the bottom end more sharply than the top. All in all, the PIE Plastixx Composites price index gave up another seven points.
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 May 2013: Secondary market reacts to downslide in primary notations / Most products lose ground / Holidays diminish demand / Impetus for firming expected as Q2 ends
The downswing in prices for virgin standard thermoplastics LDPE, HDPE and PP in German-speaking Europe gathered slight momentum in May, due to declines in feedstock notations – ethylene lost EUR 100/t, propylene EUR 80/t. In the first third of the month, notations for virgin polyolefins fell by about two-thirds of the respective monomer decline. PS producers mostly passed on the fall of EUR 11/t in the styrene reference contract price.
Pressure from the primary side led to price concessions for recycled polymer as producers of rLDPE film were forced to concede EUR 10-20/t. Secondary PP, with a decline of EUR 5/t, was caught in a weak rollover as was secondary PS.
The many holidays and extended weekends in May pressured demand for recyclate so that inventories inevitably lengthened. Basic grades of polymer for secondary processing were readily available – at the prevailing high prices. No supply bottlenecks were reported. The deterioration of primarily notations also had an adverse effect on orders for recyclate as buyers expected secondary prices to come down accordingly. Demand for rHDPE and rPS from southeast Europe and North Africa took up some of the slack left by holiday-making players in Northwestern Europe.
Convinced that the lower primary notations in May means that the downward trend has bottomed out, secondary players are sticking by plans to raise their own prices by as much as EUR 50/t in June. The margin losses they incurred in May will have to be made up in June, players told PIE. Rising demand should make it possible to push the increases through, the thinking goes. If the long hoped-for and now concretely expected revival of orders from the building industry finally does materialise, buyers of recyclate will have to be prepared to pay more.
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 May 2013: Little change / Individual increases only for speciality grades / Focused and quiet work characterise the mood / Stability is the key market operative
The sea winds continue to blow calm for the engineering recyclate market during the mid-April to mid-May timeframe. Only in a few individual instances were there any price increases in specific products from the rPA and rPC portfolios. Downward pricing in the primary market involving ABS and PP compounds had not yet penetrated the secondary markets, keeping their prices stable. In contrast, primary producers of rPC and rPA were having very little luck in May of achieving any decisive breakthroughs in terms of their desires to raise prices. Thus, the bottom line is that the prevailing conditions in the secondary market remain firm.
And nothing much seems to have changed in the secondary market either over the last few weeks. The orders from the automotive sector continue to sail smoothly through to the order books of recyclate providers. Any reason for change was not coming from the purchasing side either as production scrap – though remaining at a high price level – was still in ample supply and availability thanks to the banks.
The fact that secondary providers had no trouble living with this market reality could be seen in some sobering perspectives: generally, if there is a positive development in the purchasing situation as is essentially to be expected in the case of PP compound and potentially also with ABS, then usually “the love” is shared at other levels along the chain without too much pain being felt. No one is expecting very much movement to happen before the end of June when the current quarter comes to an end. The market signals for engineering recyclate remain, happily, stable for the players in this industry.
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!
