Skip to main content
Sister Publication Links
  • Plastics News
Subscribe
  • Newsletters
  • 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. Prices & Data
August 29, 2019 08:00 AM

PET price decline slows down in August

  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    PNE

    L/LDPE

    The €10/tonne increase for the August ethylene settlement surprised market players amid widespread expectations for a drop in the ethylene contract price with spot notations falling. However, naphtha costs increased by about 5% in July and the very hot weather in large parts of Europe meant that crackers were in part unable to run at full capacity due to limitations in cooling.

    Some L/LDPE producers applied the €10/ton increases on their L/LDPE offers in the contract market. However, most deals were conducted on the basis of a weak rollover from the previous month as a result of low trading activity during the holiday season. Sellers were hopeful of a demand pickup towards the end of the month. 

    Material availability was still on the high side during August but producers’ stocks were moving towards more normal levels. 

    HDPE

    The €10/tonne increase for the August ethylene settlement surprised market players amid widespread expectations for a drop in the ethylene contract price with spot notations falling. However, naphtha costs increased by about 5% in July and the very hot weather in large parts of Europe meant that crackers were in part unable to run at full capacity due to limitations in cooling.

    Some HDPE producers applied the €10/ton increases on their HDPE offers in the contract market. However, most deals were conducted on the basis of a weak rollover from the previous month as a result of low trading activity during the holiday season. Sellers were hopeful of a demand pickup towards the end of the month. 

    Material availability for HDPE was at more normal levels compared with L/LDPE and special offers were available from some producers. 

    PP

    Following the €80/tonne fall of the July propylene reference price, the European C3 contract price for August was fixed with a rollover at €910/tonne. In August, the European propylene market was in better balance with production returning to normal after the end of the maintenance season. 

    Polypropylene prices followed the stable feedstock costs with rollovers being the norm and no particular impetus was evident for significant price movement. 

    Demand remained on the low side with many converters away on holiday, particularly in Southern Europe. In July, some buyers purchased more than they needed due to the sharp price reductions, which further held back demand last month. 

    Supply was at normal levels although there was evidence of special offers becoming available for homopolymer material as the month progressed, which started to put some downward pressure on prices. 

    PVC

    In August, the pro-rata cost of S-PVC base resin went up by €5/tonne as a result of the €10/tonne increase in ethylene costs. However, PVC sellers found it difficult to raise prices in line with the increase in their cost base due to low demand. S-PVC base prices therefore remained largely unchanged against the previous month. For unplasticised PVC compounds, titanium dioxide costs increased during the third quarter and modifier costs were also up. For plasticised PVC compounds, plasticiser prices have come down.

    Demand was low during August and slower than the same period last year. Most converters were shut down for summer holidays and several producers conducted maintenance shutdowns. Concerns over global economic growth also held back order intake. 

    Most plants operated as normal while plant outages in France and Hungary did not lead to shortages. 

    PNE

    PS

    The August styrene monomer (SM) reference price settled €33/tonne higher compared to the previous month at €1,027/tonne. The SM cost increase reflected feedstock cost increases for benzene of €39/tonne and €10/tonne for ethylene. 

    Most polystyrene sellers announced plans to raise prices by more than the SM reference price, but buyers were not prepared to comply. Contract negotiations for general-purpose polystyrene and high-impact polystyrene products were mostly settled in line with the SM rise. 

    PS supply was more than sufficient despite production cutbacks over recent months. Most plants ran without interruption with maintenance turnarounds only scheduled to start late summer. 

    In August, demand remained low, especially in Southern Europe, as a result of the holiday season. The economic slowdown across Europe was another factor. Converters were also holding back from purchasing in anticipation of further price cuts. 

    PET

    PET prices have fallen sharply since June due to over-supply and low demand but were a little calmer in August. The August feedstock reference prices for paraxylene had not settled at time of writing but monoethylene glycol prices fell slightly. With market sentiment predicting fairly stable costs, most PET contracts settled showing either a small drop or a weak rollover compared to the previous month 

    The return of hot summer weather from mid-July onward led to a much needed upturn in demand for beverages, and hence PET bottles. However, the PET demand upturn was reportedly not quite as brisk as that experienced during summer 2018.

    The European PET market remained well supplied in August despite producers’ attempts to curtail production levels. Asian imports were still evident, but not as competitively priced as in previous months.

    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