Price Reports January 2022

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 January 2022: Rollovers for polyolefins, PVC /  New highs for EPS, ABS /  February prices could ease for many types

PE: Due to the rollover of C2 and weak demand, not very much was likely to happen on the price front with the LD film grades. So, all participants involved quickly agreed on a rollover. However, the C2 price for February (up EUR 67.50/t) and the still-expected factoring in of the higher energy costs are likely to push prices up in February. With LLD injection moulding grades, European production remains limited. Nevertheless, producers managed for the most part to fulfil contracts. The first arrival of significant import quantities is taking a little pressure off the supply market, but what this will mean for the prices remains to be seen. In the case of the HD blow moulding types, the price range widened significantly to several 100 euros between various products. Because of the imports, the prices should have come under increasing pressure, but exactly the opposite has happened: numerous producers succeeded in obtaining considerable price increases because many converters had emptied their stocks to such an extent that they now had no option but to buy at a high price. And finally, EVA, which has been desperately short for so long. Here, it was an absolute sellers’ market, as the material shortage is making all producers’ dreams come true.

PP: It was generally thought that polymer producers would be able to leverage their higher energy costs to push through price hikes in January. Surprisingly, this didn't happen. Instead, the two sides agreed relatively quickly to a rollover in line with the C3 contract. Across all polymer grades, orders from the automotive industry were few and far between. Converters did not refill inventories to the extent expected, covering only their immediate needs. The EUR 67/t rise in the February C3 contract, in addition to the higher energy costs that producers failed to push through, should raise notations for talc-filled 20 compounds. Compounders have kept the market balanced by adapting supply to demand. Thus they could achieve price increases beyond the C3 rise and even factor in higher energy costs.

PVC: Prices for base material moved sideways in January 2022, in the same way as in the previous month. Once again, the majority of suppliers were unable to price in their increased energy costs. This was because imports – which were also moderately priced in comparison – slightly improved availability while demand weakened somewhat. In February, many producers will be seeking to catch up on the energy costs they have not yet passed on. Whether they manage to do so will most likely depend on how the import volumes develop. The increase in the C2 reference (up EUR 67.50/t) will also doubtless be put forward as an argument for raising their prices. Contrary to the case for base material, quotations for compounds continued unabated with their upward trend – with prices now having risen for the 20th month in succession! The cost increases for titanium dioxide, stabilisers, flame retardants, modifiers, fillers, and additives were the main driving force here. Even through the supply situation for these materials has improved somewhat, a further round of price increases is on the agenda for February. The foreseeable rise in base material constitutes a further cost factor.

Styrenics: The increase in the styrene reference (up EUR 119/t) continued to raise styrenics prices in January 2022, fuelling new all-time highs for EPS and ABS. Several polystyrene suppliers hiked prices above the SM cost increase on the grounds of higher energy costs. Passing on (composite) costs was also considered the lower limit for premiums among European ABS producers. However, low-priced imports from Asia made themselves felt, particularly for injection moulding grades, affecting the lower end of the PIE price range. While the premium on styrene mostly formed the upper limit of price increases on EPS white, prices for EPS grey shot up above the SM change. For all styrenics, the supply situation improved somewhat in January. This was due in part to the restart of production facilities that had previously been out of action for PS, and in part due to slightly increased (albeit still too low) imports of ABS. Overall, however, demand for all styrenics was not particularly abundant either, which is certainly also owed to the very high price levels. These levels are likely to erode somewhat in the weeks to come, at least for PS and EPS, as the drop in the SM reference for February (down EUR 51/t) is putting prices under slight pressure. Ineos Styrolution (Frankfurt, Germany), for example, has announced a February price cut for GPPS. For ABS, on the other hand, there are hardly any changes on the cost side, as prices for components butadiene (up EUR 50/t) and ACN (up EUR 115/t) counteract the SM reduction.

PET: European PET markets were far from uniform in January. A switch from quarterly to monthly price fixing resulted in a number of large orders, prompting up to triple-digit hikes in that segment in January due to the higher raw material and energy costs. Customers still welcomed the switch, however, as they are expecting costs to fall again soon. The hikes also had an impact on the mid-lever orders that PIE reports on, with prices up EUR 60/t on average, compared to December. At the upper end of the range, an additional EUR 20/t had to be paid for very small volumes. It should be added here that this was only the case where any transactions were concluded at all, since buyers only ordered what was absolutely necessary. Customary inventory purchases for the spring season were generally postponed, since here too, the expectation was that prices would be falling by March at the latest. At the same time, the production situation in Europe was making a noticeable return to normal in January already, and the first imports are set to arrive soon. February promises to resemble a game of poker, with all sides maintaining their positions. The bottom line is that there is likely to be little movement, and if there is, it will probably be on the downside. Many customers are relying on quotations falling in the spring and will be extremely reluctant to make purchases. Since the end markets are subdued, no major bottlenecks are to be expected in March either – or so the buyers are hoping – and they will only start making purchases again once prices start to fall.

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  January 2022: Situation with PC transparent seems to be easing due to fall in benzene price / PA remains problematic / Still a case of “volume before price” for POM

The increase of EUR 209/t in the benzene contract, plus the higher energy costs, led to a significant rise in the price of PC transparent. European production plants have stepped up their output, so availability has improved significantly. The delivery time for standard materials has thus dropped from 20 weeks to somewhere between 8 and 12 weeks. The quantity of imports has also increased. For PC speciality products, however, supply is still very tight. There are unlikely to be any major supply problems for the standard material again in February; delivery of the contracted volumes has already been promised. The situation with the speciality materials is very different, because converters here will have to contend with continuing allocation arrangements.

There is an extreme shortage of ABS for the production of PC/ABS blends, and this represents the bottleneck for the whole product line. Many converters’ stocks are already so empty that they have no alternative but to buy in at the currently high prices, and this trend is likely to intensify.

Polyamide remains problematic. The extreme shortage of PA 6.6 has allowed producers to factor in their higher energy and logistics costs without converters being able to put up much resistance. There are at least signs of the tension easing slightly in February as stocks are now being filled and production should be able to maintain its usual output.

The situation with POM is different. There are constant battles over the small amount of material that is available. It is definitely a case of “volume before price”. For February, further increases are to be expected because of the material shortage, and even the improving import quota will not change very much here.

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 January 2022: Widespread rollovers / Weak demand takes the wind out of the sails of any surcharge wishes / Processors build up stocks / Factoring in energy costs may be an issue in February

At the beginning of the year, prices remained at the previous month’s level. Almost everywhere, negotiating partners agreed to rollovers quickly and without many discussions. Only PU MDI polymeric saw some initial tugs upward and downward, until prices largely settled back to the December level here as well – demand was simply too weak to implement desired mark-ups.

It was not only from the automotive sector that volume orders were low. Demand from the construction sector also left much to be desired, and orders from the comfort sector dropped noticeably. Additionally, availability turned out to be better than expected, because – as in the case of MDI – the feared bottlenecks did not occur in the run-up to plant maintenance or – as in the case of TDI – additional quantities from Southern Europe and the Middle East supplemented the local supply.

Apart from the fact that suppliers expect demand from the construction sector to pick up, the overall situation is unlikely to change much in February. However, factoring in energy costs could become an issue in places – at least for PU MDI polymeric, slight surcharges cannot be ruled out against this background.

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 January 2022: Triple-digit hikes for ortho resins and glass fibre / Roving remains very tight / Little price momentum likely in February

The first month of 2022 saw substantial price hikes for ortho resins and glass fibre. In the resins segment, starting materials such as glycols saw triple-digit hikes. Suppliers of glass fibre took advantage of the tight market to push through triple-digit surcharges for energy and logistics.

In February, ortho resin buyers can expect the price dynamic to continue pointing upward, as no relief can be expected on the glycols front before March. The market for glass fibre could be quieter, as quarterly contracts have already been agreed upon. Here, only a few producers are seeking surcharges for energy and logistics. Activity may well be a bit more turbulent when the next quarterly negotiations begin.

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 January 2022: Premiums only for rPET / Discounts for some rPE grades, rollovers otherwise / More production scrap due to lower exports / New attempts to price in energy, logistics costs

Suppliers only managed to raise rPET prices in January 2022, and even here the premiums fell short of the level of the increased cost base for several grades. For the other grades, recyclers’ attempts to factor in increased energy and logistics costs failed due to subdued demand. Some types of rPE even recorded declining quotations, especially as competition from low-priced, non-standard virgin material made itself felt for these grades in particular.

The general supply in production scrap, however, improved due to reduced exports of scrap plastics. With more production scrap available, recyclate output picked up and expanded the supply side. rPET, where the scarcity of bottle scrap was further aggravated, remained exempt from this trend.

In the weeks to come, recyclers want to make up for what they failed to achieve at the start of the year: incorporating increased energy and logistics costs into sales prices. But even in February, they can only succeed where the balance between supply and demand does not throw a spanner in the works.

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 January 2022: Marked differences in addition of higher energy costs / Recyclers take advantage of all increases in demand / Further discussions expected

Wherever the market situation allowed, producers of engineering recyclate took the opportunity in January to factor in at least part of the rise in energy costs. This was the case above all with rABS, rPC black, rPC GF, and rABS/PC blends, where demand at the start of the new year picked up to varying degrees. For rPOM black, the further worsening of availability supported recyclers’ calls for increases, in contrast to which, the continuing weak demand for rPOM natural and rPC natural provided no scope at all for price increases. The situation with rPA 6 and rPA 6.6 can only be described as absurd: With virtually no material on the market, there was little point negotiating new prices, so they were simply left at December levels.

However, to what extent producers will be able to factor in increased costs for energy and base material in the near future will be a matter for negotiation again in the next talks between recyclers and converters. Especially with rABS, rPC black, rPC GF, the rPC/ABS blends and the rPP-C compounds, further increases can be expected.

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!