Skip to main content
Sister Publication Links
  • Plastics News
  • Plastics News China
SustainablePlasticsFINAL
Subscribe
  • Login
  • SUBSCRIBE
  • News
    • Recycling
    • Sustainability
    • Bioplastics
    • Technology & Materials
    • ExxonMobil joins Agilyx feedstock partnership
      Lidl
      PreZero pushing forward towards a circular value chain
      Wikipedia Foam Takeout-main_i.jpg
      Virginia lawmakers reach 'great polystyrene compromise,' pass EPS ban, chemical recycling law
      Vita Nova aims to ensure a new life for flexible packaging
    • Arburg publishes its first Sustainability Report online
      Wikipedia Foam Takeout-main_i.jpg
      Virginia lawmakers reach 'great polystyrene compromise,' pass EPS ban, chemical recycling law
      Natural household product supplier Aunt Fannie’s now certified plastic neutral
      Azek-Recycling-Bin-main_i.png
      Azek decking, Sika roofing boost recycled content
    • SoluBlue’s seaweed-based polymer packaging wins Postcode Lotteries Green Challenge
      PHA: As green as it gets
      Braskem to invest $61 million to expand green ethylene production capacity
      On a healthy footing from the start - new shoe brand launches recovery slip-on made from eco-foam
    • Injection Moulding
    • Blow Moulding
    • Extrusion
    • Thermoforming
    • 3D printing
    • Technology
    • Materials
    • Machinery
  • Opinion
    • View Point
    • PHA: As green as it gets
      Opinion: The future of sustainable plastic
      A year to remember
      Opinion: California introduces world’s toughest plastic bottle recycling legislature – will other markets follow?
  • Events
    • Our Exhibitions
    • Plastics Industry Awards (PIA)
    • Ask the Expert
    • Sustainable Plastics Live
    • Reifenhäuser Technologies Livestreams
    • Plastics News Europe Live Archives
    • Plastics Recycling Show Europe
  • Prices & Resources
    • Polymer Prices
    • Data Reports
    • White Papers
  • Contact
    • Advertise
    • Media Pack
  • Subscribe
  • Digital magazine
    • Digital Magazine
  • Multimedia
MENU
Breadcrumb
  1. Home
  2. News
January 20, 2016 06:00 AM

Polymer prices rise

David Platt
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Growing market tightness saw polymer price hikes by producers in December.  

    L/LDPE

    Following a price hike of €35/tonne over and above the unchanged ethylene contract price in November, L/LDPE producers once again lifted prices well in excess of the feedstock cost rise in December.

    While the December ethylene reference price increased €22.5/tonne compared with the November settlement, L/LDPE prices saw price increases averaging about €60-70/tonne in early December. However, strong buyer resistance led to more moderate price rises of €30-40/tonne by the end of the month.

    Producers have been able to raise prices well in excess of costs because of output restrictions, market tightness and a lack of imported material.

    Demand was more lively than usual in December as converters sought to maintain their stocks at a reasonable level.

    A fall of €27.5/tonne in the January ethylene contract price could see small L/LDPE price reductions in January.

    HDPE

    In December, HDPE producers once more succeeded in raising prices well in excess of the increase in the cost base as a result of market tightness. The December ethylene contract price increased by €22.5/tonne due to supply concerns.

    In early December trading L/LDPE suppliers managed to push through price gains of €60-70/tonne. As the month progressed however, buyers became more resistant and managed to restrict settlements. Blown film grades registered gains of €50/tonne during the month while injection moulding and blow moulding prices saw gains of €35/tonne.

    Demand was better than expected in the run-up to Christmas. However given the supply shortages, particularly for blown film grades, many buyers did not get the volumes they had ordered.

    In January, producers are likely to ask for a price rollover after the ethylene contract price fell €27.5/tonne.

    PP

    Polypropylene prices pointed upward in December after sliding in the previous month. The December propylene contract price settled on a rollover but producers managed to push through gains of €15-30/tonne to widen their profit margins.

    Initially PP prices saw gains of up to €50/tonne, but the price pressure eased in the run-up to Christmas. Homopolymer injection and copolymer injection grades ended the month with gains of €30/tonne with homopolymer film prices up €15/tonne.

    The price premium above feedstock was attributable to both healthy demand and tight supplies. The after-effects of the mid-year tightness due to the large number of plant outages remained in the market, with low inventories across the value chain. One major producer said in a letter to customers that it expected a shortfall in its ability to meet PP demand in December.

    PS

    In December, polystyrene producers continued to benefit from supply tightness to widen their profit margins. The styrene monomer reference price increased €35/tonne in December after receding by €30/tonne in the previous month. Suppliers demanded price increases in excess of the feedstock cost rise and GPPS prices added €45/tonne during the month as a whole. High-impact polystyrene grades held its price premium at €90/tonne despite a €35/tonne reduction in butadiene costs.

    Demand was better than expected during the first half of the month but order intake tailed off as the Christmas holidays approached.

    Supply tightness combined with the lively demand led some producers to run short of material and place customers on allocation.

    PS prices could head downward in January after the styrene monomer reference price settled €20/tonne lower and the supply situation starts to ease.

    PVC

    PVC producers once again struggled to pass on the rise in ethylene costs to their customers in December. The ethylene contract price settled €22.5/tonne higher, implying a proportionate €10/tonne rise in PVC production costs. Producers wanted to at least raise PVC prices by the rise in their cost base but met with strong resistance. While some producers managed to push through small gains, most contracts were rolled over.

    Order intake was down in line with expectations but better than would normally be expected in December, due in part to the very mild winter weather.

    Although supply was low due to plant outages, producers were able to meet the demand without much difficulty.

    PVC producers are likely to target a price rollover in January to boost their profit margins after the ethylene contract price fell €27.5/tonne.

    PET

    There was little movement in bottle-grade PET prices in December after feedstock prices remained stable. The paraxylene contract price settled on a rollover while the monoethylene glycol contract price fell just €5/tonne.

    Producers had to give up the small margin gains they had achieved in November with most contracts settling at a slightly lower level.

    The price decline was mainly the result of cheaper Asian imports. There is still however a moderate oversupply in Europe, despite producers curbing output and plant outages.

    Lotte Chemical's plant maintenance at Teeside in the UK works continue as planned and was expected to continue until mid-December.

    As the bottle-making market was rather quiet PET demand was down in line with seasonal expectations

    PET prices are expected to fall in January on lower contract prices for paraxylene and monoethylene glycol.

    Get our newsletters

    Staying current is easy with Sustainable Plastics' news delivered straight to your inbox, free of charge.

    Subscribe

    Subscriptions to Sustainable Plastics, the leading Pan-European magazine for the circular plastics industry are coming soon.

    Subscribe now
    Connect with Us
    • LinkedIn
    • Twitter

    "In a changing world, Sustainable Plastics is a constant: a platform the plastics industry can rely on to deliver the news and knowhow impacting the industry going forward”

    SustainablePlasticsFINAL
    Contact Us

    11 Ironmonger Lane, EC2V 8EY
    United Kingdom 
     

    Customer Service:
    1-313-446-0450

    [email protected]

     

    Resources
    • Advertise
    • Sitemap
    • Careers
    • Subscribe
    Affiliates
    • Plastics News
    • Plastics News China
    • LSR World
    • Urethanes Technology
    • Tire Business
    • Rubber & Plastics News
    • Automotive News
    • Automotive News Europe
    • Crain Publications
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • Recycling
      • Sustainability
      • Bioplastics
      • Technology & Materials
        • Injection Moulding
        • Blow Moulding
        • Extrusion
        • Thermoforming
        • 3D printing
        • Technology
        • Materials
        • Machinery
    • Opinion
      • View Point
    • Events
      • Our Exhibitions
        • Plastics Recycling Show Europe
      • Plastics Industry Awards (PIA)
      • Ask the Expert
      • Sustainable Plastics Live
      • Reifenhäuser Technologies Livestreams
      • Plastics News Europe Live Archives
    • Prices & Resources
      • Polymer Prices
      • Data Reports
      • White Papers
    • Contact
      • Advertise
      • Media Pack
    • Subscribe
    • Digital magazine
      • Digital Magazine
    • Multimedia