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
November 02, 2016 06:00 AM

Ethylene and propylene prices rise on back of crude oil

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

    Crude oil prices pushed polyolefin prices higher in October.

    L/LDPE

    Producers' plans to pass on the €15/tonne rise in the October ethylene contract price appeared not entirely successful in early trading as L/LDPE prices edged around €5-10/tonne higher.

    LDPE supply was sufficient to meet demand with the few remaining bottlenecks caused by plant maintenance programmes coming to an end. LLDPE was also well supplied with most production plants operating without undue interruption. There is however expected to be a lower volume of LLDPE imported material from the Middle East available to European buyers towards the end of the year. This is mainly explained by a maintenance turnaround at a large Saudi Arabian plant.

    L/LDPE film demand fell below market expectations during September as end markets were slow to recover after the holidays. At the beginning of October however, order intake started to approach normal levels.

    HDPE

    In September, HDPE sellers had to settle for a price rollover after the monthly ethylene contract price remained unchanged. Last month, HDPE prices edged slightly higher following a €15/tonne rise in the cost of ethylene. Producers planned to at least match the cost rise, but during early October trading most injection moulding and blown film contracts were settled €5-10/tonne higher. Blow moulding material availability is now more widely available and prices settled only €5/tonne higher.

    Overall, material availability is now in better balance with demand, especially for the more highly-specified injection moulding grades. The few remaining supply bottlenecks caused by plant maintenance operations was expected to draw to a close during October.

    September offtake disappointed producers as many converters worked off stocks after the holidays. HDPE demand was expected to approach normal levels last month.

    PP

    In September, polypropylene prices were widely expected to rise at least in line with the €20/tonne increase in the propylene contract price due to ongoing concerns about supply tightness. However, these fears proved to be unfounded and homopolymer film and injection grades increased by €15/tonne and €5/tonne, respectively. Only copolymer injection prices matched the €20/tonne cost rise.

    In October, the propylene contract price increased €35/tonne due to ongoing supply tightness. In early October trading, polypropylene prices were matching the rise in the cost base.

    Polypropylene availability improved during September as additional propylene supply arrived in Europe following an end to a number of force majeures at propylene production facilities. In addition, two production facilities in Eastern Europe are expected back on stream in October.

    Demand was expected to return to more normal levels during October.

    PS

    The October styrene monomer reference price fell €50/tonne as a result of improved availability and a drop of €30/tonne in the cost of benzene. Polystyrene producers planned to pocket some of the cost reduction by restricting price rebates to less than the fall in their cost base.

    One major producer announced a planned price cut of just €30/tonne from 1 October. In early trading, some contracts were settling down by €40-50/tonne. The price premium for HIPS remained at €85-90/tonne.

    Overall material availability was sufficient to meet demand. One major supplier resumed normal production following a temporary plant shutdown in September.

    Demand continued at a reasonable pace during early October with some buyers appearing to take advantage of the lower prices to refill inventories. Order intake from the construction sector was however said to be disappointing.

    PVC

    In October, there was very little pressure for PVC base polymer prices to rise. The €15/tonne increase in ethylene costs implied a €7.5/tonne increase in PVC material costs. However, PVC additive costs such as titanium dioxide, plasticisers and modifiers faced upward pressure in September and October. As a result, sellers called for price increases for PVC dry blends and compounds. In early October trading, some contracts were being settled showing price increases of €5/tonne compared with September.

    Material availability was more than sufficient to meet demand despite a few minor production issues at some European plants. However, one German PVC producer announced force majeure for S-PVC late September, which could restrict supply.

    In September, PVC demand was somewhat disappointing after the holiday period had ended and order intake continued at a slow pace early October.

    PET

    Following a sharp price reduction of around €40/tonne during the second half of September, bottle-grade PET prices remained under pressure at the beginning of October. October contract prices for paraxylene and monoethylene glycol, the two key PET feedstocks, had not yet settled at the time of writing, but market expectations were either for stability or a small cost reduction. Early contract settlements for PET reflected market sentiment and notations crumbled by around €10-20/tonne.

    European PET supply remains long despite producers' attempts to control production. Competitively-priced Asian imports also remain widely available, which continued to drive prices downward.

    In September, PET demand recovered as a result of the warm summer weather in southern Europe stimulating bottle production. Last month, order intake was slightly lower as would normally be expected at the start of the autumn season.

    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