Polymer prices: December breakdown

Downward polymer prices (Graphic)

Polymer prices were mostly stable in thin pre-holiday trading.

L/LDPE

L/LDPE prices softened further during November after the ethylene contract price fell €25/tonne. Both LDPE and LLDPE prices fell in line with the ethylene cost reduction, despite attempts by some producers to raise prices. LDPE supply tightened although no shortages were reported while LLDPE is well supplied by local producers and from imports. Demand remained very weak across most end markets.

In mid-December, L/LDPE prices were largely carried over from the level of the previous month following a rollover for the ethylene contract price. Demand was very weak in the run-up to the holiday period; many converters will likely close their plants early for an extended holiday. There was more than enough material available to satisfy the low demand even though plants continued to operate at reduced rates. Prices are unlikely to move during the remainder of the month.

HDPE

HDPE producers adjusted prices downward in line with the €25/tonne reduction in the ethylene contract price in November. While demand remained at an extremely low level, there was evidence that converters were pre-buying to rebuild stocks with prices at such a low level. HDPE remained oversupplied despite production cutbacks while imports were readily available.

Prices across all HDPE types were largely unmoved during the first two weeks of December after the ethylene contract price settled with a rollover from the previous month. Trading was extremely thin; many converters started to wind down their operations early for an extended holiday; very limited volumes of material were ordered. Supply was sufficient to meet the low demand, even though polymer plants were operating at reduced rates. HDPE prices are unlikely to move over the remainder of the month.

PP

In November, PP price reductions matched the €25/tonne fall for the propylene contract price. PP remained over-supplied even though producers operated plants at reduced rates; supply was swollen by an inflow of Asian imports. Demand weakness prevailed as converters kept inventories low for year-end balance-sheet reasons, keeping order activity at a low level.

Prices of all PP classes remained largely unchanged during the first two weeks of December after the propylene contract price was rolled over from the previous month. There is more than enough material available on the market despite local PP plants continuing to run at low operating rates. Demand was very thin as converters reduced ordering in the run up to an early Christmas break. PP prices are not expected to move very much up to the end of the year.

PS

Polystyrene sellers attempted to hold prices at the beginning of November even though the styrene monomer reference price had settled down by €17/tonne. However, sellers soon had to backtrack on their efforts to hold prices, which over the month fell by more than the styrene monomer cost. Demand remained at a low level while supply was plentiful.

After eight months of declining prices, PS producers announced a planned price rise of €30/tonne at the beginning of December following a €21/tonne increase for the styrene monomer reference price. However, a combination of low demand and ample stocks kept the price rise in line with the rise in the styrene monomer reference price. The premium for high-impact modified types compared with standard grades remained at €100/tonne. Converters ordered the bare minimum for end-of-year balance sheet reasons.

PVC

PVC producers’ plan to implement a price rollover at the beginning of November soon faced strong buyer resistance as PVC prices softened by around half of the €15/tonne reduction in the cost of ethylene. There was still more than enough material available from local producers and from imports to satisfy the subdued level of demand. Buyers were in no rush to supplement inventories despite such low prices.

Base PVC prices remained unchanged during the first two weeks in December after the ethylene contract price was rolled over from the previous month. Trading was extremely thin; converters planned to close early for an extended Christmas break, further reducing the number of working days in the month; and thus, PVC demand. Supply was swollen by a continued inflow of imported material while European producers maintained plant operating rate restrictions.

PET

The gloomy state of the PET market persisted into November, although market sentiment pointed to prices starting to bottom out. Indeed, PET prices were mostly stable to slightly softer last month on lower costs and ongoing demand weakness. The October paraxylene reference price was fixed down by €30/tonne and the cost of monoethylene glycol also fell. Supply remained more than adequate although import volumes have fallen, in part due to port strikes in Europe which have led to small price rises.

Rising feedstock costs persuaded European PET producers to call for price increases at the beginning of December. However, prices are unlikely to rise because of the low demand situation. A price rollover to a small reduction seems more likely. The paraxylene contract price settled €15/tonne higher in November as fewer imports and lower local production rates reduced supply.

* Source : https://www.plasticsnews.com/resin-prices/sp-polymer-prices-december-breakdown/