Skip to main content
Sister Publication Links
  • Plastics News
  • Plastics News China
SustainablePlasticsFINAL
Subscribe
  • Login
  • Register
  • SUBSCRIBE
  • News
    • Recycling
    • Sustainability
    • Bioplastics
    • Technology & Materials
    • 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
      Tetra Pak introduces beverage cartons incorporating certifed recycled polymers
      Baerlocher: adding value with stabilisers to promote the circular economy
    • 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
      Tomra plastic picture-main_i.jpg
      ‘Long, hard engagement' seen on global plastics treaty
    • 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
      Pants in any colour, as long as they’re green
    • 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
December 07, 2016 06:00 AM

Polymer prices up despite sales plateau

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

    Despite stagnant sales polymer prices increased overall in November.

    L/LDPE

    In November, L/LDPE producers targeted price increases that at least matched the €30/tonne increase in the ethylene contract price. However, by mid-month price settlements fell some way short of target. LDPE contract prices were settling on average around €15/tonne ahead of October closing prices with LLDPE grades registering gains of only €5/tonne. Only the highly specified LDPE injection moulding grades registered price increases close to the €30/tonne rise in feedstock costs.

    Material availability tightened in November, although there was sufficient supply to meet demand. Several plants experienced production issues, which limited availability of certain grades. LLDPE availability could be restrained by a reduction in imported material from the Middle East over the coming months.

    L/LDPE demand remained surprisingly muted for the time of year with few early signs of a pick-up ahead of Christmas business.

    HDPE

    The November ethylene contract price settled €30/tonne higher following a rise in naphtha costs and a depreciation of the euro against the US dollar. HDPE producers attempted to pass on the full cost rise but due to weaker than anticipated demand mostly had to settle for less.

    There was very limited upward movement at the lower end of the price scale. However, tighter availability for some highly specified grades led to sharper price gains at the upper end of the price scale.

    There was generally sufficient material available to meet demand although production problems at an MOL Petrochemicals plant in Hungary led to supply restrictions for certain grades. There was an ample supply of competitively-priced imported injection moulding material available.

    HDPE demand was reported as somewhat disappointing in the run up to the Christmas period.

    PP

    The November propylene contract price settled €30/tonne higher following a rise in naphtha costs and the weakness of the euro against the US dollar. A tightening polypropylene market enabled producers to pass on almost the full cost increase to buyers. Homopolymer injection and homopolymer film grades registered price increases of €20/tonne with prices for copolymer injection grades rising by €20-25/tonne.

    There were reports of shortages for some high melt-flow PP and copolymer while being well balanced for normal grades. The tightness for copolymer grades was linked to plant maintenance in Eastern Europe and could continue through to Q2 2017.

    There were few signs of an upturn in order intake as would normally be expected ahead of the Christmas period. Homopolymer film business was reported as performing better than either homopolymer injection or copolymer injection markets.

    PS

    The fire at the BASF Ludwigshafen plant mid-October and subsequent closure of styrene production at the site caused nervousness in the market and led to a sharp rise in styrene monomer spot prices. Consequently, the November styrene monomer reference price settled €40/tonne higher.

    Polystyrene producers announced a €50/tonne increase in the November gross market price for general-purpose polystyrene (GPPS). By mid-month, GPPS prices were trading at around €40/tonne higher with the premium for high-impact grades remaining at €80-90/tonne.

    The restrictions to output at BASF's Ludwigshafen site were lifted early November, although production remained at a low level. Some PS producers experienced supply restrictions, but there was sufficient material available to meet demand.

    Demand was quieter than would normally be expected for the time of year with some converters reporting a possible slowdown in economic activity.

    PVC

    In November, a €30/tonne increase in the ethylene contract price raised the PVC production cost base by €15/tonne. PVC rigid blends also face rising titanium dioxide costs while stabiliser and modifier costs are also rising. Meanwhile, an increase in plasticiser prices are driving up the cost of flexible PVC compounds.

    Given the upward cost pressure, PVC producers aimed to at least match the rise in their cost base during November trading. By mid-month, both rigid and flexible PVC material did indeed see price rises matching the €15/tonne increase in ethylene costs with more highly specified material showing slightly larger gains.

    Material availability was more than sufficient to meet demand with most plants running without interruption. However, the declaration of force majeure by Vynova on caustic soda deliveries from its UK chlor-alkali plant restricted feedstock supply.

    PET

    The European paraxylene and monoethylene contract prices had not been settled when Plastics News Europe went to press mid-November. However, market insiders anticipated very limited movement in the overall PET cost base.

    PET producers' profit margins continued to be under pressure last month due to lower demand and excess supply. There were however reports of small price increases for low volume lots, but bulk volume orders saw either a price rollover or a small decline.

    Material availability remains long with European plants running at utilisation rates of between 70-80%. European producers also face a growing tide of competitively-priced imports from India, Southeast Asia and Turkey.

    Meanwhile, PET has seen lower than expected demand this year due to the poor summer weather. Seasonal demand declined further last month as the onset of winter reduced demand for cold beverages.

    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