Plastics News Europe - November/December 2019 - 30

polymer prices

petrochemical feedstock contract prices January-December 2019 (€/tonne)
Jan

Feb

mar

Apr

may

June

July

Aug

sept

oct

Nov

Dec

change
oct/Dec

ethylene

985

1015

1045

1075

1000

1010

970

990

960

970

Propylene

925

950

970

990

910

860

870

840

845

Styrene

975

995

1042

994

1027

1086

1065

1000

953

-47

benzene

485

497

558

640

602

638

677

760

695

545

615

Paraxylene

925

960

995

805

765

760

*760

1055 1152.5 1185
680

907.5 812.5

* Note: December PX contract price not settled at time of writing

Source: Plastics News Europe

l/
l
D
p
e

In November, L/LDPE contract prices fell in line with the €30/
tonne reduction in the C2 reference price.
Material availability returned to more normal levels as
several production plants resumed operations following outages and producers ended production cutbacks. However,
producers are expected to slow down output by mid-month
in time for customers to begin their winter break. One producer is planning to switch off all C4 material to take off

some of the pressure.
While PE film demand started to return to more normal levels in November it is still below producers' expectations. The
widespread criticism of plastics in the media appears to be having a negative impact on market sentiment.
For December, following a €10/tonne rise in the ethylene
contract price L/LDPE prices can be expected to either remain
unchanged or show a small rise.

H
D
p
e

In November, HDPE blow moulding, injection moulding and blown
film product prices matched the €30/tonne reduction in ethylene
costs.
Material availability was good in November as most European
production plants operated as normal after several plant outages in
recent months. There was also a significant volume of imported blow
moulding and injection moulding material available from North
America.

Polymer demand was better last month as converters bought additional material ahead of Christmas business. Order intake for blow
moulding product from the automotive industry continued to disappoint while construction sector activity was better than expected.
For December, the most likely scenario is for a price rollover. While
the December ethylene contract price settled €10/tonne higher demand is expected to dwindle in the run-up to the Christmas break.
There will also be plentiful supply and continued import pressure.

p
p

In November, PP homopolymer film and homopolymer injection
prices declined in line with the €30/tonne reduction in the propylene contract price. Copolymer injection prices declined by slightly
less than the C3 reference price as the impact of force majeure at
LyondellBasell's Carrington UK plant began to have an effect on
supply.
Most other PP production plants operated as normal and supply was more than sufficient to meet demand.

Order intake saw a welcome improvement last month although volumes were less than would normally be expected for
the time of year.
The most likely outlook for December is for unchanged prices
after the propylene reference price settled €5/tonne higher. Demand is likely to be very low as converters take a long winter
break. Producers are expected to respond by reducing operating
rates to very low levels.

p
s

Bearish expectations in the styrenics sector led to further
downward price pressure last month. Sellers initially hoped to
restrict price rebates to around the €65/tonne level, similar to
the decline in the styrene monomer reference price. However,
given plentiful supply ad low demand, sellers were forced to
yield to buyers' demand for even lower contract settlements.
Furthermore, when it became clear towards the end of the
month that prices would likely fall further in December, the

price reductions went even further. Overall, general-purpose
polystyrene prices fell €70/tonne compared with the previous
month.
For December, the SM reference cost was fixed €47/tonne
lower compared with November and hence further price rebates are expected. Polystyrene is likely to remain oversupplied
for the time being. Demand will be restrained by the holiday
period and subdued nature of the economy.

p
V
c

PVC base resin producers initially called for a price rollover last
month in an effort to improve margins. However, following the
€30/tonne fall in ethylene costs, converters insisted that they
should benefit by a pro-rata cost reduction of €15/tonne. For
PVC compounds, prices fell by less than C2 due to a reduction
in the cost of additives.
Following several plant outages in recent months, supply
was much improved in November as PVC production returned

to more normal levels. Demand was reasonable with the key
building and construction sector ordering at close to normal
levels.
The outlook for December is for stable PVC prices. A €10/
tonne fall in the December ethylene contract price implies a
pro-rata reduction of €5/tonne in the cost of PVC production.
However, order intake is likely to turn down sharply after midmonth.

p
e
T

European PET prices continued on a downward path last month
in a bearish market. The key paraxylene feedstock reference price
was eventually fixed as a rollover for November after prolonged
negotiations.
Despite producers' efforts to stabilise contract prices, PET prices fell by €20/tonne due to a combination of oversupply and
weak demand. In the spot market, PET prices tumbled towards
the €800/tonne mark amid pressure from a growing supply of

competitively-priced imported Asian material.
While European PET producers continued to control production levels, higher imports ensured that an oversupply situation
remained. Furthermore, converters were in no hurry to buy additional volumes as stock levels remained more than adequate.
For December, PET prices are likely to fall further. Feedstock
costs are expected to decline further, material availability will remain plentiful while demand is unlikely to improve.

november/december 2019

Plastics News Europe - November/December 2019

Table of Contents for the Digital Edition of Plastics News Europe - November/December 2019