The latest pricing charts can be accessed here.
In February, standard thermoplastics prices increased across the board following a steep rise in feedstock costs.
LDPE prices increased at a much higher rate than the €52.5/tonne rise for the ethylene reference price because of tight supply. LLDPE, where supply is not quite so tight, posted gains of around €60/tonne. HDPE and PP prices settled with gains just above the increases of €52.5/tonne for both ethylene and propylene prices.
PVC prices increased by €30/tonne, which was slightly above the proportionate rise of €26.25/tonne in the cost of ethylene as key players implemented margin recovery strategies.
Polystyrene prices increased by €50/tonne compared to an increase of €45/tonne for the styrene monomer reference price.
Standard thermoplastics prices continued to rise through to mid-March driven by a further increase in feedstock costs. However, producers had to lower their plans for sizeable price hikes across all material classes because of weak demand and buyer resistance.
L/LDPE prices had increased by €20-30/tonne by mid-March after a rise of just €2.5/tonne for the ethylene reference price; HDPE prices were up by €20/tonne.
PP prices increased by €20/tonne compared to a rise of €7.5/tonne for the propylene reference price.
Base PVC prices were rising by €10-15/tonne in mid-March, much more than the proportionate rise in ethylene cost on the PVC production base.
The styrene monomer reference price increased by €65/tonne following a sharp rise in spot styrene prices. PS prices increased in line with the increase in monomer cost.
Supply adequate
Supply is more than adequate to meet the low level of demand across most product sectors, despite polymer production plants continuing to operate at reduced rates and a number of plant shutdowns for maintenance., Material availability for HDPE, PS and PET is normal, but at a low level, while for LDPE, LLDPE, PP and base PVC, supply is tighter.
A summary of selected supply-related developments is shown below;
- Vestolit (Orbia subsidiary) shut down a PVC facility in Germany for maintenance on 10th February
- Shin-Etsu shut down the S-PVC plant in the Netherlands on 27th February for maintenance
- A fire on 14th February at the Anwil PVC plant in the Poland led to the shutdown of all facilities
- TotalEnergies declares force majeure for polypropylene at Gonfreville, France on 17th February due to “unforeseeable technical problems”
- Shell Chem Netherlands shut down its styrene facility on 26th February for maintenance
- Ellba shut down its styrene plant in the Netherlands on 26th February for maintenance.
Demand weak
Polymer demand remained well below what would normally be expected in February and during the first two weeks of March. Warehouses at most converters are well stocked and in view of the low demand across most end use sectors and the current high prices, converters are buying just sufficient material to cover their immediate production needs. Many converters are also delaying their purchasing plans as prices are widely expected to fall in April.
April outlook
Crude oil and naphtha prices have been falling in March compared with February. It appears likely that the April polymer feedstock cost settlements will feel the impact of the downward trend in upstream costs. At the same time, polymer supply is expected to remain on the tight side; constrained by production cutbacks and plant shutdowns for seasonal maintenance programmes. Demand is likely to continue less than normal but should pick up as prices start to fall and seasonal factors come into play.