Price Reports November 2020

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: November 2020
Standards Thermoplastics  Engineering thermoplastics Polyurethane Feedstocks	Composites/GRP Standard Recyclate  Engineering Recyclate

 

 

  Standard thermoplastics November 2020:  Polyolefins and PET show little movement / In part hefty hikes for PVC and styrenics / Significant increases for PS, EPS and ABS likely in December

PE: Calls for price increases, including margin improvements, put forward by the producers were only seldom successful. In most cases there was at best a strong rollover. Initial tendencies towards a certain stockpiling were evident, especially with off-grade products. Converters evidently tried, ahead of a possible fresh lockdown, to top up their inventories. Although some companies had their eye on end-of-year bonuses, corresponding orders were only seldom possible in view of the significantly reduced supply. Despite many outages of polyolefin facilities in Europe, producers were usually able to meet the demand fairly promptly. The lack of imports was particularly noticeable with film material. In December, nearly all producers are calling for renewed price increases above the EUR 20/t cost increase for ethylene, but the market situation will seldom allow this – especially not margin improvements. On the other hand, the otherwise usual bargains at the end of the year are likely to be on the rare side. An improvement in the supply of imports is not to be expected in the short term. The continuing purchases for stock, especially in the packaging sectors – both with converters and brand-name companies – will keep demand in these segments high.

 

PP: Polypropylene notations showed little to no movement in November as C3 rolled over and producers’ costs remained stable. Prices for the homo grade remained flat at the October level, apart from minor increases that did not influence the market as a whole. Copo buyers at the lower end of the price scale had to pay slightly more. For compounds, sellers were able to push through hikes solely for light coloured volumes that were not under supply contracts. Plant outages negatively affected solely copo products, in some cases leading to delivery delays. Market watchers believe that these effects could become more pronounced over the coming weeks as converters step up ordering to reach their annual bonus levels. Also, as the C3 reference added EUR 15/t in December, buyers can expect slightly higher prices.

 

PVC: The rise in PVC prices continued in November, climbing again for the sixth month in succession. S-PVC base reached its highest level in years. As was the case earlier, the prices were driven by the tight market situation. Although several production plants have since resumed operation, stocks were very low after the preceding stoppages. Producers once again had to put many of their customers on allocation. In the case of the compounds, rising prices resulting from the base material were somewhat slowed down by the additives. Producers want to hike PVC notations further in December and point out that prices in other regions of the world are generally higher. However, in Europe PVC is also currently not cheap, limiting the scope for further increases. Apart from that, demand always declines for many applications at this time of the year; Christmas holidays will also put a damper on business. Because PVC prices have largely decoupled from feedstock costs over the past few months, even the rise in C2 reference is unlikely to have any major effect. With S-PVC (P), on the other hand, prices could climb further because the cost of plasticisers has since increased.

 

Styrenics: After the November styrene contract increased by EUR +58/t, the prices for PS, EPS and ABS all trended upwards in November 2020. The extent of the hikes, however, varied considerably: the increases for EPS reached the extent of the SM cost increase at best, but mostly remained slightly below it. The increasingly scarce availability of polystyrene, on the other hand, played into the hands of suppliers, who were generally able to negotiate a slight expansion of their margins above the cost increase. Against the backdrop of a tight market situation resulting from an ongoing absence of imports from Asia, ABS suppliers were able to enforce substantial premiums that were completely decoupled from feedstock costs. In December, styrenics prices will continue their uptrend, and strongly so. One factor is that the styrene reference [hier den Link setzen] price has increased by EUR 139/t in the last month of the year. The second factor is scarcity, as the availability of both PS and EPS has been sharply reduced, making premiums above the cost increase somewhat likely. With ABS, this is already the case, as the supply situation remains extremely tight. 

PET: The European PET market remained quiet in November, with the cost of the key PX feedstock falling slightly. The supply situation through European PET production improved consistently over the course of the month after a number of plants went back on-stream following maintenance turnarounds. There were very few imports around following a surge in freight charges for containers from Asia. Apart from that, prices in Europe are not particularly attractive for Asian suppliers at the moment, and buyers generally prefer to opt for familiar European products. Ahead of Christmas business, demand rose satisfactorily, but of course remained comparatively weak in view of the prevailing pandemic. Hence most market players at all levels agreed to simply carry over the October notations into November. December is also expected to remain largely calm. From mid-month, there is not likely to be much activity because of the pandemic. Both producers and converters are therefore preparing for a quiet turn 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!

 

 

 

 

 Engineering thermoplastics November 2020: Price increases for PC and PA after many months / Surprisingly high demand from automotive industry / Battle for material likely in December

After months of downward movement and stagnation, prices of engineering thermoplastics rose again for the first time in November, albeit fairly moderately. The most heavily affected were converters of polycarbonates and polyamides, where PIE received reports of increases ranging from EUR 10/t to EUR 40/t, particularly at the lower end of the price range.

The main contributor to the turnaround of the price spiral was the generally strong demand compared with the tight supply. In many customer segments, business has improved significantly. The automotive industry especially saw surprisingly strong demand following months of constraint. But producers of white goods and other domestic appliances as well as the E&E sector were also very active.

Otherwise, it is once again a case of the calm before the storm. From mid-December, there are likely to be further price increases, more or less across the board, because what is already a tight supply situation will become even tighter as a result of various unscheduled outages, for example, with PA 6 and PA 6.6. In addition, the higher prices of feedstocks and additive components will also have worked their way through. The biggest increase is expected for glass-fibre reinforced PA 6.6 grades, with possible rises of up to EUR 155/t.

Upcoming plant closures over the bank holidays, in combination with a certain amount of short-time working that is still ongoing, should reduce the demand to a certain extent, but a number of producers are still suffering from production outages – increasingly through cases of Covid-19. With the upcoming start of the new year, the protection offered by the quarterly agreements will also come to an end, so there could be battles for material in December.

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 November 2020: Isocyanates still rising / Polyols follow / Demand exceeds supply / No relief before mid-December

The upward momentum in the MDI price could be held halfway in check, but TDI soared to a record high. The sellers’ market drove buyers to tears. Anyone who needed to order had to pay fantasy prices, especially for smaller accounts. In some cases, demands reached up to EUR 5,000/t – and they were paid. The restart of the plant in Ludwigshafen / Germany provided a small ray of hope, even if force majeure was not immediately lifted.

The blame for the continued tight supply situation, alongside the outages in Europe, fell on the pronounced shortfall in the US, where at times only about half of capacity was on stream. Exports from the US to other regions were part of the reason Europe was undersupplied and prices rose dramatically.

Even if some of the outages and maintenance turnarounds have now ended, buyers here will be kept on allocation. At the same time, there are increasing signs that the tightness is easing, and with it the upward price momentum. Ahead of this year’s Christmas holiday season, converters hope producers will build some buffer stocks. Problems with phosgene supply from the Middle East could throw a spanner into this calculation, however, so that the supply situation could continue to be strained after all.

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: Resins and glass fibre flat / Little impetus from demand side / Minor increases possible at end of November

In November, the expectations that some harboured for October were fulfilled. Order volume from the construction, chemicals and utility vehicle sectors picked up strongly. Against the backdrop of a nearly EUR 60/t rise in the SM contract and an upsurge in demand, the ortho resins market was extremely dynamic. With Asia – in particular, ravenous China – absorbing much of the styrene supply, European resins producers struggled to secure this crucial starting material. There were still few supply restrictions, if any, and these were limited in scope. The higher volume of styrene exports suggests, however, that there may well have been delivery delays.

The nearly EUR 140/t rise in the December styrene contract will drive notations for ortho resins higher despite the seasonal weakening of demand expected at mid-month. Glass-fibre products saw little momentum. While there was a slight upward trend for assembled roving, prices for chopped-strand mats weakened somewhat. Some producers see scope for price increases in the new year, and these are likely to go through.

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 November 2020: Prices trending horizontally / Only rPET continues downward trend / Increased demand for rPE and rPP / No major movements expected for rest of year

Recyclate prices remained largely stable in November 2020. Low virgin material prices continue to cause trouble for recyclers. However, increased demand from catch-up effects following previous production shutdowns at processors has kept rPE and rPP prices stable. rLDPE and rPP in particular also benefited from a certain scarcity of virgin materials. Several respondents to the PIE survey emphasised that the dried-up margins would have left no scope for discounts either way. For rPET, the situation is entirely different: recyclate and flake prices both continued their previous downward trend.

For the rest of the year, recyclers expect no major price movements. Most industry players will be happy if they can finally close and abandon the difficult year of 2020. They are more optimistic about 2021, partially because they are counting on positive stimuli from the sustainability initiatives various brand operators. Recyclers also agreed that policymakers could have done more in this regard.

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 November 2020: Prices of reinforced types rise due to bottleneck with short glass fibres / Automotive demand much livelier / Across-the-board increases for secondary material unlikely before January

For the majority of types covered by this report, the price increases imposed so far in the primary sector have not been enough to also impact the secondary materials. This also applies to primary ABS, which has since become significantly more expensive. Trouble is brewing, however, on a less expected front: Short glass fibres for glass fibre-reinforced compounds have been very scarce lately because of the lack of imports from China. Production there is booming again – also in car production – and this is soaking up almost all the available material. Converters in Europe are experiencing a bottleneck that is also driving up compound prices – and it has not left the recycled material unscathed.

Business in most of the customer segments was good. Consumer goods and the building sector had been pointing the way in the last few weeks, and a significant revival has now also been seen in car production. Demand in November was even described in some cases as “bombastic” due to the effects of a revival in other areas.

The rising prices on the primary market are giving hope to recyclate manufacturers, although real price increases are not likely before the start of the coming year. Some secondary producers anticipate a continuation of the strong demand from November so that, in combination with the substantially higher price of the primary materials, they should then have adequate scope to push through increases for their recycled products.

For converters, demand will decline significantly from mid-December, as is normal at this time of year. Extended stoppages for car production lines are currently under discussion and could slow things down for a little longer.

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!