Plastics News Europe - June 2018 - 34
polymer prices
oversupply forces l/lDpe
prices lower as costs rise
P
rice development for the
various standard thermoplastic material classes varied in May, with modest price
movements up and down, depending on feedstock contract
price settlements. A spike in
naphtha prices on the back of an
overall rising crude oil price,
sparked an increase in the ethylene and propylene contract prices for May.
For polyolefins, there were
quite different price movements
for L/LDPE, HDPE and PP. L/LDPE
prices fell despite a €20/tonne
rise in the ethylene contract
price. L/LDPE prices were between €5-10/tonne lower compared with April closing levels.
This was mainly as a result of
continued surplus supply and
subdued demand.
HDPE, where supply is tighter,
registered gains of around €15/
tonne, still less than the increase
in feedstock costs. Polypropylene
prices were also firmer with a rise
of €15/tonne, which was again
less than the €25/tonne rise in
the propylene contract price.
Polystyrene prices fell again in
May following the triple-digit decline in April. General-purpose
PS product prices dropped by
around €30/tonne compared
with a €40/tonne reduction in
the styrene monomer reference
There were reports of logistics problems and delivery delays as many haulage companies
took advantage of the bank holidays to extend the weekends
price, meaning producers slightly
improved their profit margins.
PVC base resin prices saw
modest price gains while flexible
PVC compounds increased by a
bit more due to the high plasticiser prices.
Bottle-grade PET prices saw
another spurt in May as a result
of production outages at a major
PTA producer and strong seasonal demand.
prices monitor may 2017-may 2018
Source: Plastics News Europe
2.5
PS (general purpose)
PP (homo injection)
LDPE (film grade)
HDPE (injection moulding)
LLDPE (film grade)
PVC (high quality)
PET (bottle grade)
2.0
May
Apr
Mar
Dec
2018
Jan
Feb
Nov
Oct
Sept
Aug
July
1.0
2017
May
June
1.5
Supply variable
On the feedstock front, ethylene
remained over supplied in May
although the market was slightly
more balanced since the spate of
exports in April. The propylene
market was showing signs of
tightness on upcoming planned
turnarounds in Europe, The styrene monomer market was more
in balance due to imports from
the US.
L/LDPE product remained over
supplied while HDPE and polypropylene material was somewhat
tighter. The PVC market is was
good balance with polystyrene
availability remaining on the long
side. The PET sector was short of
PTA as a result of the afore-mentioned plant outages.
There were few new unplanned plant outages announced in May. However, JBF
Industries declared force majeure
on PET from the company's production facilities in Geel, Belgium
on 16 May as a result of a feedstock shortage. One of its main
feedstock suppliers declared
force majeure 4 April, and had
further reduced availability on 16
May, after which JBF started to
receive only 20% of its contracted volume of the feedstock. As a
result, the company put 20% allocation on balance May volumes, with immediate effect. BP
34
is reportedly supplying PTA.
There were reports of logistics
problems and delivery delays as
many haulage companies took
advantage of the bank holidays
to extend the weekends.
Demand disappoints
Polymer demand was rather
more subdued than would normally be expected during the
month of May. It appears that
many buyers had sufficient
stocks of material and were
adopting a more cautious 'waitand-see' approach. The numerous long weekends due to public
holidays in May also disrupted
production with many converters
turning off production lines for a
few days.
June outlook
Crude oil prices continued to
climb throughout May mainly as
a result of geo-political tensions
in the Middle East. For June,
feedstock contract price settlements are expected to follow
suit. European standard thermoplastic prices are also likely to rise
on the back of higher costs.
However, L/LDPE producers will
have to get to grips with the excess supply situation. Otherwise,
most polymer classes should
benefit from an expected upturn
in seasonal demand.
JUNE 2018
Table of Contents for the Digital Edition of Plastics News Europe - June 2018
Contents
Plastics News Europe - June 2018 - Cover1
Plastics News Europe - June 2018 - Cover2
Plastics News Europe - June 2018 - Contents
Plastics News Europe - June 2018 - 4
Plastics News Europe - June 2018 - 5
Plastics News Europe - June 2018 - 6
Plastics News Europe - June 2018 - 7
Plastics News Europe - June 2018 - 8
Plastics News Europe - June 2018 - 9
Plastics News Europe - June 2018 - 10
Plastics News Europe - June 2018 - 11
Plastics News Europe - June 2018 - 12
Plastics News Europe - June 2018 - 13
Plastics News Europe - June 2018 - 14
Plastics News Europe - June 2018 - 15
Plastics News Europe - June 2018 - 16
Plastics News Europe - June 2018 - 17
Plastics News Europe - June 2018 - 18
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Plastics News Europe - June 2018 - 20
Plastics News Europe - June 2018 - 21
Plastics News Europe - June 2018 - 22
Plastics News Europe - June 2018 - 23
Plastics News Europe - June 2018 - 24
Plastics News Europe - June 2018 - 25
Plastics News Europe - June 2018 - 26
Plastics News Europe - June 2018 - 27
Plastics News Europe - June 2018 - 28
Plastics News Europe - June 2018 - 29
Plastics News Europe - June 2018 - 30
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Plastics News Europe - June 2018 - 33
Plastics News Europe - June 2018 - 34
Plastics News Europe - June 2018 - 35
Plastics News Europe - June 2018 - 36
Plastics News Europe - June 2018 - 37
Plastics News Europe - June 2018 - 38
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Plastics News Europe - June 2018 - 40
Plastics News Europe - June 2018 - 41
Plastics News Europe - June 2018 - 42
Plastics News Europe - June 2018 - Cover3
Plastics News Europe - June 2018 - Cover4
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