Skip to main content
Sister Publication Links
  • Plastics News
Subscribe
  • Login
  • SUBSCRIBE
  • News
    • Recycling
    • Sustainability
    • Bioplastics
    • Technology & Materials
    • Injection Moulding
    • Blow Moulding
    • Extrusion
    • Thermoforming
    • 3D printing
    • Technology
    • Materials
    • Machinery
  • Opinion
    • View Point
  • Events
    • Our Exhibitions
    • Plastics Industry Awards (PIA)
    • Ask the Expert
    • Reifenhäuser Technologies Livestreams
    • Plastics News Europe Live Archives
    • Sustainable Plastics Live
    • Reuters Responsible Business Europe 2022
    • Plastics Recycling Show Europe
  • Prices & Resources
    • Polymer Prices
    • Data Reports
    • Sponsored Content
    • White Papers
  • Contact
    • Advertise
    • Media Pack
  • Subscribe
  • Digital magazine
    • Digital Magazine
  • Multimedia
MENU
Breadcrumb
  1. Home
  2. News
July 03, 2018 07:00 AM

Severe feedstock shortage drives up PET prices

Severe feedstock shortage drives up PET prices

Plastic News Europe
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Tota SA
    The new unit, based on Borealis' Borstar technology, will more than double the site's polyethylene capacity to 1.1 million tonnes a year

    In June, rising feedstock costs led to significant price increases for standard thermoplastics. The polymer price increases either matched the cost rise, or in most cases, fell some way short of the cost rises. However, for PP copolymers and bottle-grade PET price increases were even higher than the cost rise as a result of supply tightness.

    Many converters were reluctant to buy as the month progressed as falling naphtha notations fuelled speculation about possible price cuts in July. Furthermore, this month marks the beginning of the holiday season, which will put pressure on demand.

    Bottle-grade polyethylene terephthalate (PET) prices increased well above the €60/tonne rise in the key paraxylene feedstock in June. The European market faced further supply tightness last month due to the persistent drought on availability of the PTA feedstock as the force majeure remains in place at BP's plant in Geel, Belgium. Some PET producers were unable to meet their contractual obligations to customers, a situation which is expected to persist for at least a few more months. With seasonal demand for beverage bottles reaching a peak, buyers were left searching for scarce material.

    Low-density and linear low-density polyethylene (L/LDPE) producers were seeking price increases which at least compensated for the €63/tonne rise in the June ethylene contract price. For small sized contracts prices were increased almost in line with the cost rise. However, for large and medium-sized contracts price increases fell some way short of the cost rise. The LDPE supply position is now in better balance, but LLDPE remains short. Converters bought cautiously in expectation of lower prices this month.

    Following a €63/tonne rise in the June ethylene contract price high-density polyethylene (HDPE) suppliers attempted to raise contract prices in line with the rise in the cost base. However, HDPE price gains fell short of the planned hikes registering gains of around €50/tonne. Blow moulding material was well supplied but blown film and injection moulding grades were tighter. Demand was subdued across most end sue sectors with converters reluctant to buy excess stock given an expectation of lower feedstock cost settlements this month.

    The June propylene contract price settled €80/tonne higher mainly as a result of cutbacks in ethylene production which limited the availability of propylene. The rise in propylene costs led to a rise in polypropylene (PP) prices. Homopolymer prices increased more or less in line with the cost rise whereas copolymer prices increased by more than the cost rise. Homopolymer supply was more balanced but many copolymer grades saw restricted availability due to plant maintenance shutdowns. PP demand was at normal levels.

    In June, a €63/tonne increase in the ethylene contract price implied a proportionate cost increase for polyvinyl chloride (PVC) of just over €30/tonne. Initially, PVC producers called for price hikes of €40-50/tonne to improve their profit margins. However, a well-supplied market and buyer resistance limited price increases to €20-30/tonne. Most PVC plants were running without disruption and imported material could be found in southern Europe. Demand was below expectations as many converters considered that prices would be lower in July.

    In June, general purpose polystyrene contract prices increased €45-50/tonne on the month, slightly lagging the €60/tonne rise in the styrene monomer reference price. The premium for high-impact polystyrene remained at €100/tonne despite butadiene costs rinsing €140/tonne. PS producers were keen to pass through in full the monthly feedstock rise, but converters resisted. Sufficient material was available from local producers but import volumes were low. However, demand was mixed as buyers minimized purchases as they anticipated price drops in July.

    Newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

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

    SUBSCRIBE
    Sustainable Plastics Media Kit Cover

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

    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”

    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
    • LSR World
    • Urethanes Technology
    • Tire Business
    • Rubber News
    • Automotive News
    • Automotive News Europe
    • Crain Publications
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2022. 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
      • Reifenhäuser Technologies Livestreams
      • Plastics News Europe Live Archives
      • Sustainable Plastics Live
      • Reuters Responsible Business Europe 2022
    • Prices & Resources
      • Polymer Prices
      • Data Reports
      • Sponsored Content
      • White Papers
    • Contact
      • Advertise
      • Media Pack
    • Subscribe
    • Digital magazine
      • Digital Magazine
    • Multimedia