Price Reports September 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: September 2014
Standards Thermoplastics Standard Recyclate Polyurethane Feedstocks	Engineering Recyclate Engineering thermoplastics Composites/GRP

Standard thermoplastics September 2014: Falling costs drive notations down/ Demand remains below expectations / Prices likely to stabilise and firm in October / PET notations still under pressure

PE: Following the EUR 55/t slide in September’s ethylene contract, European PE suppliers announced cuts of EUR 30/t across the entire portfolio. Depending on the market situation of each specific type, the discounts were in the end seldom limited to EUR 30/t, with most processors able to push for the full EUR 55/t. The fact that demand was relatively sluggish and below the level normally seen in September further restricted producers’ room for manoeuvre.

Buyers who resorted to wait-and-see tactics in September could end up feeling slightly disappointed in October. With costs stable and the market trending tighter, producers could in some cases succeed in pushing through part of their calls for hikes of up to EUR 30/t. At any rate, the trend is now pointing up rather than down.

PP: Following the EUR 50/t decline in September’s C3 contract, most European PP producers offered rebates of EUR 30/t. One regional manufacturer flogged off surplus volumes through European distributors, who in some cases passed on all of the price relief to buyers. All in all, producers could achieve only slight margin improvements, for the most part for film grade. Notations for PP compounds slipped by EUR 20-40/t. Indexed contracts also went down a notch. At distributors, this drove notations further downward.

The rollover in October’s propylene contract should keep a lid on any price movement for compounds. The tightening market for standard grades, at least in the first half of the month, could lead to slight gains for producers, who are seeking hikes of around EUR 20/t. Alternatively, the materials could see a rollover. In the injection moulding segment especially, slackening automotive demand is exerting downward pressure.

PVC: No matter how much resistance they put up, in the end European PVC producers were left with no choice but to pass on the proportionate declines in September’s monthly ethylene contract. Following two weak months, with demand from the construction sector persistently below expectations, many manufacturers actually found themselves granting more than the cost decline. This was more or less true for almost all the PVC types covered in this report.

Following the rollover in October’s ethylene contract, PVC prices are likely to move sideways as well, even if producers have already issued calls for hikes of EUR 20/t. With demand still poor, it is highly unlikely, however, that they will manage to push through any increases at all. At the same time, the ongoing pressure from the caustic soda chain will prompt producers to dig in their heels.

PS: Following the EUR 50/t decline in September’s SM contract, prices for styrenic polymers crumbled on a broad front. While producers of ABS and EPS were able to pocket a little of their cost relief, PS producers passed on the full amount to their customers. As the summer holiday season waned, demand for styrenics picked up. The PS and EPS insulation markets remained in oversupply, however. The situation is unlikely to change much in October, with volume sales likely to be frozen at the September level and after the monthly SM contract was fixed at a rollover.

PET: It took an extremely long time to settle August’s contract notation for key PET feedstock PX. In the end, both the August and September contracts were fixed almost simultaneously. Whereas the August notation reflected the imbalance between the two lead contracts, and was fixed slightly higher, September’s contract ended up being settled about EUR 10/t below that of July. Whether deliberate or not, the uncertain cost situation meant the decline in PET notations ended up being smaller than initially expected. With the market trending long, the weakness in the global polyester chains was reflected by declines of about EUR 20/t. Recyclate prices also showed first signs of the fall registered in virgin material notations in August.
Prices are likely to continue their descent in October. Together with new volumes coming on stream in Europe, the oversupplied Asian polyester markets and the cold weather will serve to dampen demand. Against this background, suppliers can consider themselves lucky if they manage to keep notations stable.

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 September 2014: Polyamides show first signs of price erosion as demand from auto industry cools / Other materials stable / Business likely to remain weak in October

September saw initial signs of erosion in European engineering thermoplastics notations. The significant fall in demand from the automotive segment in particular pressured prices of standard polyamides. Producers’ attempts to hike PC prices also failed for the same reason. As for the commodity-related ABS and PP compounds, the decline in both SM and propylene also dragged prices down. By contrast, PBT and POM notations held stable. The weakness of the euro kept imports at bay. Although PMMA prices moved sideways, upward pressure remains.

The signals from the automotive segment are anything but encouraging, as several players have introduced reduced working hours. This means that the downward trend with polyamides will inevitably gather momentum in October. Although the other polymers covered in this report face the same risk, they appear a little more stable due to their unique market conditions. While the future trend in PC notations remains uncertain, PMMA prices are quite likely to rise due to the limitations affecting a major supplier. By contrast, notations for commodity-related ABS and PP compounds are expected to remain largely stable amid stagnating feedstock costs.

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 September 2014: Both MDI grades lose ground / TDI firmer despite toluene's fall / Polyols react to PO outage in The Netherlands / Only polyols now pointing upward

Western European notations for both polymeric and pure MDI trended mostly stable to slightly weaker in September. In the UK, the polymeric product remained firm, but falling benzene weakened price levels in Italy and some other southern European countries. Pure MDI gave way by EUR 30-50/t, without any plausible explanation. Compared with the trend earlier this year, demand from the building industry began to slowly soften, while the footwear sector also ordered more cautiously in view of slacker demand for its products.

TDI, in contrast, firmed considerably despite declining prices for its starting material toluene. The trend was especially noticeable at the upper end of the PIE price range. Polyols rose in reaction to the ongoing outage of the SM/PO plant at Moerdijk / The Netherlands. With upstream prices softening and demand appearing to recede, notations for MDI and TDI are likely to begin falling in the coming weeks. Polyols producers, however, will be able to leverage the continued tight supply to lift prices.

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 September 2014: No price change for ortho resins and glass fibre products / Catch-up from July has no influence on range / Slight declines expected for resins

The PIE price range for medium-reactive ortho resins remained unchanged in September, even though the price paid by several large accounts reacted for the first time to the July rally on the feedstock side. Notations at most converters and distributors had reacted months ago, and the PIE range with them. The substantial decline of EUR 50/t for the two main feedstocks styrene and propylene (the latter a starting material for MPG) in the September contracts had no influence on resins pricing.

Chopped strand mats and direct roving likewise saw no price movements in September. The market had expected that after the start-up of its Egyptian plant, China’s Jushi would try to sell into the European market and thus put downward pressure on notations. This did not happen, however.

The October contracts for styrene and propylene rolled over. Nevertheless, the decline in the August and September contracts will undoubtedly leave a mark on ortho resins. It still remains unclear whether the expected slight rebates are seen in October or only in November.

Until mid-November, demand is expected to remain stable at the current level – which is slightly lower than in the year’s first half. After that, market dynamics should slacken slightly up to the end of the year.

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 September 2014: Declining virgin material prices cut highflying rPE notations down / Both rPP and rPS prices rise slightly / rPET in grasp of seasonal effects / Higher costs prompt calls for price hikes

The significant decline in virgin material prices had little effect on September’s standard recyclate notations. Solely the top end of rPE shed a few feathers, and the full primary market decline was passed on only for rLDPE extrusion grades. Both rPP and rPS danced to a different tune, as recyclers passed on some of their higher purchasing costs. Prices at the lower end of PIE’s rPET range fell slightly in response to the impending end to the beverage season. Most other recyclate grades were in strong demand, as processors strove to top up their inventories following the summer holiday vacation.

Following the significant rise in their production scrap purchasing costs, most regrinders are planning hikes of up to EUR 30/t. Since the fall in virgin material prices is expected to be rather short lived, the primary market will not offer any impulses for declines. As a result, it is quite likely that recyclate notations will rise.

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 September 2014: Uneven trends / rABS, rPP and rPA 6 point down slightly / rPC and rPA 6.6 firmer / All signs point to stability / "Fakuma" trade fair could give the market a sense of direction

The market for engineering recylate showed a mixed picture in September. While notations for the near commodities rABS and rPP compounds as well as for almost all grades of rPA 6 gave up a little ground, rPA 6.6 and rPC grades showed signs of firming, as expected. The latter tendency reflected the easing of prices for many raw materials in recent weeks. At the same time, the important automotive market began to show some signs of cooling in comparison to the considerable dynamic it had exhibited earlier.

As an impetus for momentum in any direction is completely lacking, prices for engineering recyclate are likely to remain stable over the coming weeks. Most players have their sights firmly fixed— some hopefully, others fearfully – on the “Fakuma” trade fair, due to take place in mid-October. In any case, Friedrichshafen / Germany is traditionally an important centre for the engineering plastics market and as such has been gaining importance for the recycling sector as a part of the market as a whole. Thus it will be interesting to see which signals the leading German exhibition for injection moulding provides this year.

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!