The latest pricing charts can be accessed here.
L/LDPE
L/LDPE producers initially targeted triple-digit price increases at the beginning of February and LDPE prices increased at a much higher rate than the €52.5/tonne rise for the ethylene reference price with gains of up to €80/tonne. LDPE availability was particularly tight because of production cutbacks, but there was still sufficient material available. LLDPE, where supply is not quite so tight, posted gains of around €60/tonne.
L/LDPE producers once again targeted large price increases up to €80/tonne at the beginning of March despite only a rise of €2.5/tonne for the ethylene reference price. However, by mid-month, LDPE film prices were still rising by €30-40/tonne with LLDPE film prices rising by €20/tonne. Although demand had picked up slowly due to seasonal factors, overall sales were insufficient to justify the price hikes initially being called for by producers.
HDPE
Some HDPE producers called for triple-digit price increases at the beginning of February, but prices eventually settled with gains above the €52.5/tonne rise for the ethylene reference price over the month. Supply was more than adequate despite the production cutbacks as imports swelled availability. Demand remained weak as converters bought only enough material to meet their immediate production needs.
HDPE sellers again called for a sizeable price rise at the beginning of March even though the cost of ethylene had increased by only €2.5/tonne. By mid-month, however, producers had to row back on their demands for substantial double-digit price increases as demand was simply not strong enough. Nevertheless, producers managed to improve margins with price rises of €20/tonne. There was sufficient material available despite production cutbacks and maintenance turnarounds due to availability of US imports.
PP
In February, PP producers had to settle for price increases similar to the €52.5/tonne rise in the cost of propylene. Material availability was tight due to production cutbacks and reduced volume of imports. Supply was however more than sufficient to meet the low level of demand. Buying interest was fairly muted with only the packaging sector ordering anything close to normal levels.
PP producers called for substantial price increases at the start of March even though the propylene reference price had increased by only €7.5/tonne. However, by mid-month, PP sellers were obliged to revise their offers downward because of persistently weak demand. Nevertheless, the PP price increases of €20/tonne still exceeded the increase in the cost base. Converters were holding back from buying more than they needed as prices were expected to fall in April.
PS
In February, PS producers initially announced planned price increase of €60-70/tonne following an increase of €45/tonne for the styrene monomer reference price. However, by end-month, general-purpose PS prices had increased in line with the monomer cost rise; the premium for high-impact modified grades compared with GPPS mostly remained at €80-100/tonne after the cost of butadiene also rose by €45/tonne in February. Supply was more than adequate while demand weakened.
Polystyrene producers had initially asked for price increase of €80/tonne at the beginning of March, but by mid-month, PS prices had increased in line with the €65/tonne rise for the styrene monomer reference price. Demand remained weak as converters were only buying enough material to meet their immediate production needs. Market expectation was for PS prices to fall in April. Sufficient material was available to satisfy demand.
PVC
In February, some PVC sellers initially called for price increases far in excess of the proportionate rise of €26.25/tonne for the cost of ethylene. However, by end-month, most contracts for PVC base material and PVC compounds had increased by €30/tonne over the previous month. Demand remained well below what would normally be expected while supply was more than enough to satisfy the low order intake.
PVC sellers called for price increases well in excess of the negligible rise in the in the cost of ethylene to bolster their margins. However, PVC producers had to revise their offers sharply downwards due to the very low demand; by mid-month base PVC prices were rising by only €10-15/tonne. Supply is tight due to production restrictions and plant maintenance shutdowns, yet there is still enough material to meet demand.
PET
PET prices edged higher in February with gains of €10-20/tonne. While the demand picture remained gloomy, PET prices were driven by delays in delivery of imported PET, which discouraged European converters from purchasing PET from Asia. Feedstock costs were also rising; the paraxylene contract price for January settled up by €65/tonne with the February monoethylene glycol (MEG) contract price up by €40/tonne.
In March, PET producers approached the market with planned price increases of €30/tonne despite modest increases in the cost base; February paraxylene settled with a rise of €5/tonne with MEG up by €15/tonne. However, PET prices were more or less stable by mid-month largely explained by low demand and adequate supply. Demand increased slowly in preparation for the new season but is still lower than normal. Higher imports are also pressurising European PET prices.