Plastics News Europe - June 2019 - 34

polymer prices

n May, European standard
thermoplastic prices continued
on a rising trend as higher
crude oil and naphtha prices fed
through into petrochemical feedstock costs. Polymer producers
initially called for price hikes exceeding the rise in their cost base
to extend profit margins. However, polymer demand was relatively subdued for most of the
month and sellers found it difficult to meet their pricing goals.
L/LDPE prices increased by
slightly more than the €30/tonne
rise in ethylene costs as a result
of material tightness, but by
much less than producers initially
wanted. HDPE prices, on the other hand, increased by less than L/
LDPE as HDPE availability is considered more comfortable.
Polypropylene
prices
increased by more than the monomer cost rise due to supply tightened later in the month, but here
again price increases were less
than producers wanted.
The European PS market registered its fourth consecutive
month of hikes, prompted upward by feedstock costs. General-purpose polystyrene contract
price settlements were being concluded at €20-25/tonne compared with the €40-50/tonne
sellers had initially targeted.
Last month, PVC producers

The automotive sector continued to underperform

took a tougher line on price increases aimed at improving margins. While producers did not
gain quite as much margin improvement as hoped for, they
managed to increase prices
above the proportionate €15/
tonne impact on their production costs of higher ethylene
prices.
The PET market saw weak demand and lower prices in May
with prices declining by €50/
tonne due to a reduction of €70/

prices monitor may 2018-may 2019
Source: Plastics News Europe

2.0

PS (general purpose)
PP (homo injection)
LDPE (film grade)
HDPE (injection moulding)
LLDPE (film grade)
PVC (high quality)
PET (bottle grade)

May

Apr

Mar

Dec
2019
Jan
Feb

Nov

Oct

Sept

Aug

July

2018
May
June

tonne in paraxylene costs and
lower MEG costs.

Demand disappoints
In May, polymer demand was
more subdued than would normally be expected across most
classes due mainly to weakness
in the European economy. However, there were signs of a modest pick-up in sales towards the
end of the month. Building sector activity was more in line with
seasonal expectations but the
automotive sector continued to
underperform. In addition, many
converters were holding back
from placing additional orders in
anticipation of lower prices in
June and beyond.

Supply variable

1.5

1.0

Photo: JaguarLandrover

subdued sales thwart
sellers' price hike plans
I

Material availability varied widely
between product sectors. PS
supply is plentiful, LDPE, HDPE
and PET supply was better balanced, while LLDPE and PVC
tended shorter. PP availability
shortened during the month due
to several force majeures being
called.
* Sabic Europe declared force
majeure on ethylene and propylene production on 14th May
from one of its two crackers in
Geleen, The Netherlands due to
a technical malfunction following an accident.
* Braskem declared force majeure on PP production at its site

in Schkopau, Germany due to
"unforeseen circumstances" at a
supplier.
* LyondellBasell declared force
majeure on "Clyrell" polypropylene copolymer materials from its
production in Ferrara, Italy on
3rd May due to the substantial
shortage of ethylene deliveries
from its supplier's cracker.
* As a result of a strike in Moerdijk, The Netherlands since the beginning of April, Shell Nederland
declared force majeure on the production of ethylene, propylene
and butadiene on 26th April.
The PVC sector also saw a
number of disruptions to production:
* KemOne put its PVC customers
on allocation for April due to a
feedstock shortage stemming
from a shutdown at Ineos' Naphtachimie cracker in Lavera,
France.
* Poland's Anwil was reportedly
running their plant at reduced
rates after resuming operations
in Wloclawek.
* Japan's Shin Etsu started a fourweek planned maintenance programme at its PVC plant in Pernis,
the Netherlands mid-April.

June outlook
With crude oil and naphtha prices falling during May, petrochemical feedstock contract prices could potentially settle lower
for June.

june 2019

Plastics News Europe - June 2019

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