Prices remain stable

European standard thermoplastic prices were largely unchanged last month against September levels.

PS plunges as costs fall

PS producers' attempts to pocket some of the €80/tonne drop in the October styrene monomer contract price, by holding the planned price rebates to around €45-50/tonne, were fiercely resisted by converters. Notations fell by up to €80/tonne during the first three weeks of trading with the real prospect of even steeper declines during the remainder of the month.

There is plenty of material available and producers' stock levels are at very high levels despite their efforts to curb production.

Demand was livelier in early October against a poor September due to the lower prices. Converters were, however, only buying sufficient volume of material to meet their immediate production needs.

Rollover for PP

PP producers were mostly successful in their attempt to hold onto a price rollover in October. Given the €10/tonne fall in the monthly propylene contract price this represents a much needed improvement to their profit margins.

Demand was slow to take off last month but order activity recovered to reach more normal levels by mid-month. Converters returned to the market to replenish stocks with prices stabilising and concerns that higher crude oil prices could feed through to polymer in November.

Supply was well balanced with the only disruption caused by the strike at LyondellBasell's plant at Berre, France. Dow and Unipetrol plants returned to production in October following maintenance turnarounds.

L/LDPE stable as costs holds firm

L/LDPE prices remained largely unchanged for the second consecutive month in October. Producers were initially looking to implement price increases of at least €30/tonne to bolster margins. However, as the monthly ethylene contract price settled on a rollover basis against September, they were forced to backtrack on these plans.

Material availability is for the most part good with most plants operating as normal, although at reduced rates. Force majeure was however called due to a 10-day strike at LyondellBasell's refinery in Berre, France, but the company was able to meet customer orders from other production sites.

Demand was normal in early October but was expected to pick up during the second half of the month as converters look to replenish their inventories.

In addition, crude oil prices have started to move upward again, indicating that polymer prices could head higher during the end of month negotiations.

Mixed price picture for HDPE

HDPE producers were once again thwarted in their attempts to improve the profitability of making the polymer. They called for price increases of €60/tonne at the start of the month, despite unchanged ethylene costs. However, a combination of weak demand and plentiful supply meant that their calls for higher prices were unrealistic.

Blown film prices did edge slightly higher, with blow moulding grades remaining unchanged. Injection moulding prices, on the other hand, which are most pressured by imports, slipped €10/tonne.

Demand was somewhat weaker than normal with many converters only buying sufficient material to satisfy current downstream orders.

Suppliers had more than sufficient material to meet the low demand. Material availability actually improved last month as several production lines were restarted following maintenance work.

PET costs trending lower

European PET resin producers initially targeted a €40/tonne price increase but had to revise their plans downward as feedstock costs appeared to be settling at lower levels than anticipated. Neither the official October PX nor the MEG contract prices had settled by mid-month but indications were that PX would likely rise by €20/tonne with MEG up by around €30/tonne.

Producers fought to at least preserve their profit margins but were forced to accept modest price increases of not much more than €5/tonne on average.

Bottle-grade PET resin demand was less than expected levels for the low season. Converters were buying only sufficient volumes to cover their immediate production needs with an expectation that prices would come down soon.

There is plenty of material available but producers are keeping a close eye on operating rates to avoid excessive stock building. Imports are scarce apart from small volumes from the Middle East.

Asian spot PX prices drifted lower in late September and have continued lower through early October. If the trend continues then European PX contract prices could well be settled lower in November.

PET costs trending lower

European PET resin producers initially targeted a €40/tonne price increase but had to revise their plans downward as feedstock costs appeared to be settling at lower levels than anticipated. Neither the official October PX nor the MEG contract prices had settled by mid-month but indications were that PX would likely rise by €20/tonne with MEG up by around €30/tonne.

Producers fought to at least preserve their profit margins but were forced to accept modest price increases of not much more than €5/tonne on average.

Bottle-grade PET resin demand was less than expected levels for the low season. Converters were buying only sufficient volumes to cover their immediate production needs with an expectation that prices would come down soon.

There is plenty of material available but producers are keeping a close eye on operating rates to avoid excessive stock building. Imports are scarce apart from small volumes from the Middle East.

Asian spot PX prices drifted lower in late September and have continued lower

through early October. If the trend continues then European PX contract prices could well be settled lower in November.