Price Reports Abstract June 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: June 2013 |
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Standards Thermoplastics |
Engineering Recyclate |
Standard Thermoplastics June 2013: Margin improvement for PE smaller than hoped / Monomer boosts PP, PS and EPS / Tightness despite weak demand / Costs stable / More hikes ahead
Accustomed to price reductions in past months, West European buyers of standard thermoplastics had to re-think their strategy in June. Shortly before the end of Q2, producers, bent on breaking free of constant margin pressure, called for hikes of EUR 100/t for PE, EUR 80/t for PP, and EUR 40/t for PVC and the styrenics. However, as monomer prices rose only slightly in June – ethylene by EUR 5/t, propylene by EUR 15/t, and styrene by EUR 14/t – there were no convincing arguments, so only a fraction of the targeted price hikes actually found their way into the PIE ranges for polyolefins and S-PVC. For styrenics, the increase was essentially in line with the monomer increase.As output had been trimmed, not all producers delivered on time. Technical problems, triggered not least by torrential rains, narrowed supply in some regions. Apart from that, producers started refusing new orders relatively early on. Rising prices exerted a further negative influence as converters reduced call-offs and worked increasingly from inventories.
In the first month of Q3, one of producers’ chief targets will be to improve margins. Even though the July C2 and C3 contracts rolled over from June, PE producers have announced increases of up to EUR 50/t. PP producers are seeking a slightly smaller hike. S-PVC producers will also attempt to improve their margins. At press time, the styrene monomer reference contract was agreed EUR 4/t higher at EUR 1,410/t, providing a small clue as to which way PS and EPS will move in July. In view of the prevailing tight supply situation for standard thermoplastics, prices generally are likely to tend upward; at least in the early part of the month, boosted by brisk seasonal business. Toward the end of the month, the approaching summer vacation season could lead to a surplus and open the door to attractive spot market deals.
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 June 2013: Situation still balanced / Supply adjusted to demand / Notations predominantly stable / Butadiene price plummets / Benzene also down / Automotive industry brings stability
For July, the prices of many key feedstocks used to produce engineering plastics are showing a downward tendency. Topping the list is butadiene, which plummeted EUR 250/t to EUR 1,000/t – a level it last reached at the beginning of 2010. Benzene also slipped EUR 67/t to EUR 978/t to return to a triple-digit level it has not experienced for some time. Still, with the exception of PMMA, the trend seems to be stable or even up for July. The reasons are the urgent need to improve margins and also because the automotive sector is unexpectedly lively despite the disappointing number of new European registrations. The strong US demand with large producers is making itself felt here.
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 June 2013: Notations follow costs downward / Worldwide oversupply tendency / European demand clearly below seasonal expectations / New capacities pressure outlook further
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 June 2013: MDI stable despite slack building activity / TDI and polyols crumble further / Clear trend to oversupply / Weak demand from automotive / Price pressure persists
Weak demand from the important building and automotive industries pressured the European polyurethane market in June. While MDI prices held up, TDI and polyols saw further deterioration. The soft economy was more of a factor than upstream volatility.
Led by TDI, many PU feedstock markets tended toward oversupply in June. Except for a few niche applications, volume offtake was below the seasonal level and producer expectations. In the weeks leading up to the various summer holiday breaks across Europe, there is little expectation of improvement. Thus, the markets and its notations remain sputtering.
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 June 2013: Resins prices crumble slightly / Demand softens as summer holidays start / Glass fibre products unchanged at the end of the second quarter
With the summer holidays on the horizon, prices for the medium-reactive ortho resins covered in this report retreated slightly. As the PIE range narrowed in particular at the upper end, the Plastixx Composites index gave up further ground, this time losing 1.8 points. The lower end remained flat. Market trends diverged over the month, with a slight upward trend offsetting the cautious downward movement.
The major feedstocks styrene and propylene (C3) gained some price momentum in June, with the former adding EUR 14/t and the latter EUR 15/t, but C3 was not able to compensate for the reduction of EUR 80/t in April.
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 June 2013: Scant momentum despite higher virgin prices / Weak market limits chances to improve margins / Input material still expensive / Hope for revival in June
Though prices for virgin polymers saw increases at the beginning of June in German-speaking Europe, notations for most recyclate products remained unchanged. While it takes some time for primary market hikes to trickle down to the secondary sector, another factor hampering recyclate price hikes in June was the overall slack market. The tendency toward oversupply prevented recyclers from pushing through price hikes for some products such as rLDPE film.
The only secondary polymer products to make any significant price gains this month were natural grade rLDPE film, which can be blended with more expensive material, and rHDPE pipe grade used in building applications. Notations for most injection moulding grades of rHDPE deteriorated further. Most other recycled polymers rolled over. One exception was rPP, which moved upward.
Most recyclate products were sufficiently long. Some producers built up inventories ahead of summer maintenance turnarounds. Input material was also in good supply. The only limitations were seen for rHDPE. Light-coloured and translucent rLDPE film continued expensive.
The widening gap to primary prices boosted demand for recyclate in June. On the whole, though, business was below producer expectations. The improving weather and the awakening of the building sector have driven demand for pipe grade material in particular.
Many recyclers are still struggling with the margin deterioration that has dogged the secondary sector for months and are waiting for their chance to move notations forward. The higher primary market prices are certain to increase the attractiveness of secondary material but the window of opportunity will be closing soon as the approaching summer holidays reduce demand.
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 June 2013: Prices stay put yet again / Initial signs of crumbling notations in some areas / Specialities stable / Demand relatively weak / Automotive still strong
The price picture for the engineering recyclate market between mid-May and mid-June was dominated by a rollover. There were occasional reports of prices beginning to crumble at the upper end of the scale – rPA 6 and rPA 6.6 – but there were seldom any increases. Only niche products asserted themselves with any confidence.
Players increasingly report sluggish demand, primarily from the E&E sector and the building industry. Despite the low number of new car registrations in Europe, ordering activity from suppliers to the automotive industry is still good. Whether they will be able to hold business at its current level in view of the approaching summer holiday season, however, is unclear.
Conversely, an increasing number of regrinders have reported difficulties with the purchasing of production scrap. Especially in the automotive segment, high-quality scrap is becoming increasingly short. At the beginning of the new quarter, prices for some of the grades covered by this report are destined to drop. The pressure exerted by the virgin material on the secondary product is simply too great; just look at ABS and some polyamide grades. Thus, all indications seem to point to an engineering recyclate market having only limited stability in the near future.
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!
