The latest pricing charts can be accessed here.
L/LDPE
In October, LDPE prices fell €30/tonne and LLDPE prices were down €40/tonne following a reduction of €32.5/tonne for the ethylene contract price. L/LDPE prices were also pressured by persistent weak demand and competition from imports. Supply was low as producers continued to operate plants at reduced rates, yet there was no problems in meeting contractual obligations. Demand remained flat across many end use sectors, but there were signs of an upturn in demand for agricultural film.
L/LDPE producers were pressured into reducing prices by €10/tonne during the first two weeks of November despite an increase of €30/tonne for the ethylene contract price. Converters had more than enough stock in their warehouses and bought just enough material to meet their current needs. Supply was tight because of the production cutbacks; LLDPE availability was supplemented by imports.
HDPE
HDPE prices fell by slightly more than the €32.5/tonne reduction for the ethylene contact price last month as a result of the ongoing weak end use demand and an increasing inflow of imports. Converters were ordering the bare minimum and were aiming to reduce stock levels by year end; hence there appears to be no discernible demand upturn in sight. Producers continue to run their plants with cutbacks in place.
HDPE producers lowered prices by €10/tonne during the first two weeks of November despite an increase of €30/tonne for the ethylene contract price. Converters had more than enough stock in their warehouses and bought just enough material to meet their current needs. Supply was tight because of the production cutbacks. HDPE material availability was swelled by imports and the plant maintenance season drawing to a close.
PP
PP prices fell by €40/tonne in October, which was just ahead of the €35/tonne reduction for the propylene contract price. In addition to the fall in feedstock costs, the price drop was influenced by an increasing inflow of competitively priced imported materials, good supply and persistent weak demand. There was more than enough supply to satisfy the low level of demand because of the abundant supply of imported material and the plant maintenance season coming to an end.
PP contract prices were mostly rolled over from the previous month during the first two weeks of November. Producers were planning to at least pass through some of the €25/tonne rise for the propylene contract price, but demand was simply too low. Converters are sitting an ample stock level and are buying just sufficient material to meet their immediate production requirements.
PS
Polystyrene suppliers announced planned price reductions of €165-170/tonne at the start of October following a drop of €202/tonne for the styrene monomer reference price in an attempt to improve their very thin profit margin. However, by the end of the month, GPPS prices were down in line with the feedstock cost with high-impact grades down by slightly less because of stable butadiene prices. The sharp price reduction led some processors to supplement their stocks.
Polystyrene prices were largely unchanged during the first two weeks of November. The styrene monomer reference price increased by only €5/tonne; firmer contract settlements for benzene and ethylene were offset by declining spot styrene prices. Buying activity remained very weak as converters had bought more heavily during the previous month as prices fell sharply. There was sufficient material despite production cutbacks.
PVC
In October, PVC producers were determined to improve margins with calls for price increases of €20/tonne, despite a €16/tonne reduction to the PVC cost base from lower ethylene. However, given the ongoing weak demand and plentiful stocks at processors, PVC sellers had to settle for a price rollover from the previous month. PVC compound prices fell slightly because of a reduction in the cost of additives. Supply was adequate despite production cutbacks and several planned plant outages for maintenance.
PVC sellers were once more standing firm in their determination to improve margins during early November trading. Early contracts were settling up by €10-15/tonne, which comes close to the €15/tonne increase in the PVC cost base resulting from higher ethylene costs. Material availability remains adequate to meet the low level of demand, despite the cutbacks in production.
PET
PET prices fell sharply in October because of a combination of falling raw material costs (the paraxylene contract price for September fell €105/tonne), low-season demand from end markets and a growing inflow of competitively priced imported material from the Far East. Imports are benefitting from the continued downturn in freight rates. There was plenty of material available, despite the closures of the Indorama plant in Rotterdam and the Alpek line in Wilton, UK.
PET prices are expected to once again fall sharply this month because of the ongoing lull in market demand and plentiful availability. Ongoing demand weakness has resulted in high stocks building up in producers’ warehouses while competitive imports have swelled European supply. Margins are likely to come under further pressure as the October paraxylene reference price was fixed €40/tonne higher over the October settlement.
The latest pricing charts can be accessed here.