Price Reports October 2014

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: October 2014
Standards Thermoplastics Standard Recyclate Polyurethane Feedstocks	Engineering Recyclate Engineering thermoplastics Composites/GRP

Standard Thermoplastics October 2014:  PE prices still firm / PP and PVC tending softer / PS also weakening / PET continues to erode / Polyolefin prices to see great declines in November / Unusual stock-building activity?

PE: After October’s C2 contract rolled over, producers called for hikes of up to EUR 30/t and implemented measures to keep supply as low as possible. The attempt to exploit the cracker outage in Moerdijk order to fire fears of a shortage was rather ineffective, not least since C2 spot market prices began to crumble, leading buyers to hold back on their ordering activity in expectation of their price reductions. And indeed, it is quite likely that following the EUR 90/t decline in C2, prices will fall substantially this month. With the materials exposed to imports, the price cuts could be a little less. The weak euro and higher customs duties will also limit the slide. The only possibility of the price decline being limited is if buyers decide to replenish stocks.

PP: Strong export demand enabled European PP producers to achieve a rollover for standard homopolymer injection moulding grades in October. On average, all other standard products shed around EUR 10/t, due to sluggish demand. PP engineering compounds remained stable, as did feedstock prices. Looking ahead, the EUR 90/t fall in the C3 contract will have substantial repercussions for all grades. The only uncertainty is how much of the fall will have to be passed on. The decline will push indexed contracts down two notches. It seems possible that the lower prices could trigger inventory building.

PVC: Although October’s C2 contract rolled over, producers of PVC base and paste grades had to grant slight rebates to kick-start order activity. Their efforts met with quite some success, not least since several sectors ordered quite well. Nevertheless, the margins of base material producers especially continued to suffer. The drop in additives prices meant the declines in compounds prices exceeded the fall in base material costs.

In November, prices are likely to decline following the proportionate EUR 45/t fall in C2 costs. Processors will insist that producers pass on the entire decline, which as a result of the downward trend in additive costs could end up even greater for compounds.

PS: In October, supply and demand for EPS and ABS were in balance, so that production costs remained stable. As a result, prices rolled over. The outage at the SM/PO plant in Moerdijk die not lead to supply bottlenecks.

With the rollover of the SM contract, only minor changes are expected in November, but amid ongoing oversupply, PS could deteriorate further, ABS too, appears to be pointing downward.

PET: European PET producers granted declines of EUR 15-25/t in October. Despite some controversy, the PX contract was fixed at a weak rollover even though the oversupplied Asian market sent spot prices into a tail dive and MEG, too, pointed down. All signs point towards further declines, as PET notations pay tribute to the rising global overcapacities.

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 October 2014: Price erosion with PC and PA 6 / Other types remain stable / PMMA up slightly / Cost reductions for benzene and butadiene put further pressure on PC and polyamides

October saw a certain amount of erosion with European prices for PC and PA 6, where the declining upstream costs went hand in hand with the dwindling demand for mass car models. In contrast, PA 6.6 remained stable due to its greater orientation to the still healthy premium segment of the automotive industry. PBT and POM have barely moved following the defensive measures taken by European producers and the still fairly solid demand. PMMA prices were up slightly due to the shortage of the MMA feedstock. Meanwhile, the commodity-related styrene-based engineering materials and PP compounding products remained stable like the respective standard grades.

In November, PC and the polyamides are likely to continue to be under pressure. Benzene slipped by a hefty EUR 110/t, and butadiene also took a triple-digit plunge of EUR 100/t. This could also put the focus on PA 6.6 to a greater extent than before. With PBT, discussions have since begun on the many readjustments to be made at the end of the year. It is now becoming more and more difficult to hide the cost reductions in the polyester line. POM, on the other hand, should remain stable. In the case of PMMA, there is still a latent upward pressure due to the tight supply of the monomer. ABS and particularly PP compounds (propylene is down EUR 90/t) are on the decline.

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 October 2014: Little price movement / MDI gives up slight ground / TDI uneven / Polyols mostly stable / Standstill in Moerdijk makes the market jittery

With trends in either direction balancing each other out, most polyurethane feedstocks saw little price movement in October. In November, by contrast, the polyols market especially is likely to feel the repercussions of the complete standstill at Moerdijk.

Notations for polymeric MDI gave way again in October, although the decline was not as steep as in September. Following the lead of its sister product, pure MDI – which is not as dependent on the building industry – shed some feathers too, but only at the top end of the PIE range. Despite the continued downslide in the cost of toluene since August, European TDI prices held steady at EUR 2,085/t on average in October. This was also the case in North America and the Middle East. Little change is likely to be seen in November, if production levels and demand remain at the current level. However, if toluene notations continue pointing downward, this could also be a drag on TDI.

Polyols are dancing to a different tune. Until the complete standstill in Moerdijk, prices were expected to come down on the back of sinking costs upstream, but any hopes of reduction may now have to be buried. Due to the tightness and the increasing likelihood of exports to North America, current price levels for the flexible product look certain to be cemented. This, however, does not exclude slight upward or downward movements here and there.

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 October 2014: Ortho resins and GRP roll over / Demand recedes slightly / SM tightness puts upward pressure on resins / No movement in GRP before year's end

Prices for medium reactive ortho resins remained largely unchanged in October. Demand receded slightly but remained at a normal level. With prices moving sideways, the PIE polymer price index “Plastixx Composites” was stuck at 1194.07 points.

Over the next few months, the composites market is likely to see increased activity. Most players have told PIE they believe the current tightness of SM, which has caused spot notations to soar, will eventually lead to higher resins prices. For chopped strand mats and direct roving, price hikes could be on the horizon for December, when details of the planned EU dumping duties on Chinese imports are to be revealed.

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 October 2014: rPE film notations rise slightly / Declines for rPP / Primary market surge sends PET regrind and flake prices tumbling / Regrinders hope for stability in November

Over the course of the last few weeks, European standard recyclate prices took their cue from the market conditions of the respective virgin material. Notations for all rLDPE film grades rose, mostly as a result of the euro’s weakness. As the dollar continued to make gains, a number of familiar but long absent “troublemakers” reared their heads on the European recyclate front. Asian buyers, meanwhile, were busy purchasing European product, as a result of which film scrap became increasingly tight and expensive. Since regrinders were only partially able to make up for the resulting rise in their purchasing costs, notations remain under pressure.

With the market much quieter, prices for rHDPE largely treaded water, as did those for rPS. In both cases, all signs continue to point toward stability. By contrast, rPP suppliers had to pass on the primary market declines of the previous weeks. The pressure on higher-grade material was particularly great. Looking towards November, however, prices once again appear to be firming.

The same cannot be said of rPET, which got caught up in the downward trend on the virgin material front. The resulting declines were especially painful for regrinders, whose margins are being pressured by stable bottle scrap prices. That, however, is unlikely to remain the case for long. That is little consolation for regrinders: After all, no matter how great the decline in production scrap costs will turn out to be, rPET prices will inevitably have to follow suit.

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 October 2014: Polyamide regrind down slightly / rPOM increasingly under pressure from cheap Asian virgin material imports / Other grades mostly stable / Market likely to calm at year-end

The declines on the virgin material front mainly affected polyamide regrind material in October. The downward momentum was most marked for the higher specified grades located at the upper end of the PIE range that are in direct competition with the primary product. Rates for standard ABS recyclate also dropped, following the lead of the higher-grade types that already had lost ground in September. POM recyclate prices took a much bigger tumble as the pressure posed by the mounting influx of imported basic material from Asia led to a triple-digit fall. Weakening demand was unable to counter this trend. The other grades remained largely stable – solely a few rPC types at the upper end of the range saw some minor corrections.

Looking ahead to the coming weeks, it is very possible that two conflicting factors will cancel each other out and thus bring price stability. On the one hand, costs along the aromatics chain are trending slightly up again despite the fall in oil and naphtha notations. All products containing styrene could be affected by the bottleneck brought about by the outage in Moerdijk, although the gap between most recyclates and the corresponding virgin material remains so wide that it will take some time for any effects to seep through to the secondary market. On the other hand, during the recent “Fakuma” fair, all signs pointed to a drop in demand towards the end of the year, especially in the key automotive segment. Although this could result in occasional reductions, on the whole the engineering recyclate market should remain relatively calm.

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!