Sustainable Plastics - March/April 2022 - 34

polymer prices
European petrochemical feedstock contract prices; November - December 2021 (€/tonne)
Dec 21
Jan
Ethylene
Propylene
Styrene
Benzene
Paraxylene
L/LDPE
In February, L/LDPE producers failed in
their attempts to pass through the €67.5/
tonne ethylene cost increase to converters
and prices actually declined due to weak
demand. This month, the ethylene contract
price again increased sharply, up €95/
tonne. Sellers took a firm stance on their
initial hike requests and L/LDPE prices
for the most part just exceeded the rise in
feedstock costs.
Demand was fairly tepid at the start
of the year and then failed to recover as
expected in February. In March, however,
some buyers sought additional volumes
to hedge against likely future price hikes.
On the other hand, others were cautiously
buying amid widespread uncertainties and
slowdown in their end markets.
While L/LDPE availability improved
slightly in February, supply has tightened
once again this month as there were fewer
imports arriving into Europe than expected.
HDPE
PS
In February, producers attempts to pass
through higher ethylene costs in full were
unsuccessful due to low demand. Producers
were settling for price rollovers for injection
moulding and blow moulding while blown
film prices declined €20/tonne.
This month producers were successful in
their attempts to raise prices in excess of the
€95/tonne increase in ethylene costs. March
deals conducted early in the month were
closing with price increases either matching
the monomer hikes or with a premium of €510/tonne.
Demand
picked up slightly in March after
a slow start to the year. Construction was
the liveliest sector while automotive orders
remained weak.
Supply has improved slightly with a larger
volume of imports available to European
buyers and higher production levels in Europe.
However, the availability of certain
specialty blow moulding and film grades remained
quite limited.
34
March/April 2022
A fall of €51/tonne in styrene monomer (SM)
costs in February contributed to a €60-65/
tonne decline in PS prices. The larger reduction
in PS prices over SM is largely attributable
to an easing in energy costs.
In March, PS prices resumed an upward
trend, mainly supported by an increase of
€93/tonne in the styrene monomer reference
cost. Regional styrenics suppliers tabled
planned price increases ranging from
€85/tonne to €125/tonne. Substantial price
increases were implemented aided by the
growing uncertainty in the market caused by
the war in Ukraine.
There were no major production issues
impairing European supply and two PS
plants returned to production following outages.
Demand has recovered slightly after a
slow start to the year. Some converters are
sitting on ample stocks while others sought
to buy additional material with prices set to
rise further.
By mid-February, PET prices were mostly
being settled on a rollover basis. As the
month progressed, however, upward pressure
on prices became more apparent and
by end-February, bottle-grade PET prices
had risen by €10-20/tonne.
There was growing concern about the
availability of PTA, upstream costs were rising
sharply, imports were becoming more expensive
and there was mounting pressure on
buyers who had held back from purchasing
earlier in the year, to refill their warehouses.
In March, PET prices increased sharply
amid growing uncertainty. The February
paraxylene contracts in Europe were
agreed at a split settlement, indicating
€90/ton hikes from January. The availability
and cost of imported material is of growing
concern for converters. Planned and
unplanned plant outages are also threatening
supply. Furthermore, the spring buying
season for beverages bottle-making is
just around the corner.
1,272.5
1,288
1,564
860
870
1,272.5
1,288
1,683
1,069
915
Feb
1,340
1,355
1,632
984
1,005
PP
In February, the propylene contract price increased
€67/tonne. Initially, sellers attempted
to pass through the monomer cost increase
in full, but buyers were unimpressed
and strongly resisted such significant price
hikes. PP producers were later forced to revise
their price targets. Homopolymer film
saw small gains while homopolymer injection
and copolymer injection prices fell.
This month, PP producers not only passed
through the entire €95/tonne rise in propylene
costs to buyers but also managed to factor
in a premium of €20-30/tonne.
Material availability has improved despite
some plant outages, aided by a rise in
imports from the US and the Middle East.
While specialty film grades are in short supply,
most contracts for standard material
were fulfilled.
PP demand is gradually recovering as
the spring season approaches and buyers
are concerned about further hefty price
hikes ahead.
Mar
1,435
1,450
1,725
1,004
*1,005
Source: Sustainable Plastics. Note: *paraxylene contract price for December not settled at time of writing
PVC
In February, PVC prices resumed their
upward trend as producers successfully
passed through approximately half of the
€67.5/tonne ethylene cost rise onto PVC
base prices. PVC compound prices increased
by more than base PVC resin as a
result of higher plasticiser, titanium dioxide
and other additive costs. In early March, PVC
base prices again matched the proportionate
rise in ethylene costs.
While material availability has improved
somewhat, supply remains tight despite
some returning capacities. The spring maintenance
season is however arriving, thus
further limiting supply. There is insufficient
imported material arriving from the US and
Asia, while strikes halted production at four
PVC sites in France during February.
PVC demand was livelier in February and
March after a slow start to the year. Construction
remains the key demand driver while pipes
and automotive sales was more subdued.
PET
Change Feb/Mar 22
€/tonne
95
95
93
20

Sustainable Plastics - March/April 2022

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