Sustainable Plastics - March/April 2023 - 37

polymer prices
Polyolefin prices follow
upturn in feedstock costs
LyondellBasell
petrochemical cluster,
south of France
ducers' stock levels are also on
the high side. PET producers
are starting to raise operating
rates due to an upturn in seasonal
demand.
The latest supply-side developments
include:
* LyondellBasell shut down
its 320,000 tonnes/year LDPE
plant in France for maintenance
on 22 February.
* Total Petrochemicals announced
force majeure at the
200,000 tonnes/year PP plant in
France on 9 March.
Demand low
Demand was well below what
E
uropean polyolefin
prices have increased
over the last two
months because of
higher feedstock costs.
In February, polyethylene
prices increased by €50-60/
tonne following a rise of €85/
tonne for the C2 reference price.
This marked the first significant
price rise since April 2022. Polyethylene
prices were up by a
further €20-30/tonne by midMarch
after an increase of €30/
tonne for the cost of ethylene.
Polypropylene prices increased
by €60/tonne in February,
slightly less than the
€80/tonne increase for the C3
reference price. PP prices are
rising by €30/tonne during the
first two weeks of March, which
matches a rise in the propylene
reference price.
In February, PVC prices increased
by €20/tonne, the first
price rise for nine months, following
an increase in ethylene
costs. However, weak demand
and good availability limited
price hikes to far less than what
producers initially asked for.
PVC prices were largely rolled
over in early March due to a
growing supply surplus.
Polystyrene costs and prices
were fairly stable in February
but have fallen sharply so
far this month. PS prices were
Prices Monitor March 2022 - March 2023
PET PVC LLDPE HDPELDPEPPPS
0.5
1.0
1.5
2.0
2.5
3.0
down by around €90/tonne by
mid-March following a reduction
of €113/tonne for the styrene
monomer reference price.
Further price concessions are
likely to follow as producers
look to stimulate demand.
In February, PET prices fell
by €70/tonne but began to
stabilise early March as demand
appeared to be recovering
ahead of the beverage
bottle-making season. At the
same time, import prices are
less competitive compared
with European offers.
Supply low
Producers have continued
to run their facilities at reduced
operating rates in order to keep
stock levels under control in
view of the weak demand. There
is, however, sufficient material
available across all polymer
classes to meet order intake.
Polyolefin supply has become
tighter due to planned and unplanned
plant shutdowns over
the last two months. The PVC
sector is moving into a supply
surplus, while polystyrene prowould
normally be expected
across all product classes during
February and during the first two
weeks of March. Converters were
buying just enough material to
cover their immediate production
requirements rather than rebuilding
their stock levels. Nevertheless,
while demand remained
lower than normal for the time of
year, there was certainly an improvement
in demand compared
to the very weak January levels.
There were signs of a seaPET
PVC
sonal
recovery in demand by
mid-March, especially for the
PET sector as converters began
restocking ahead of the spring
beverage bottle-making season.
The earthquake in Turkey
also led to rising PET demand
and contributed to growing
sales of PET water bottles.
LLDPE
HDPE
LDPE
PP
PS
Outlook
Few contract prices had been
agreed during the first two
weeks of March. However, the
contracts that had been agreed
by the time of writing indicated
that polyolefin prices were
settling at a similar level to the
feedstock cost rise. PVC and
PET contract prices were largely
unchanged compared to last
month. Polymer prices are more
likely to trend towards a rollover
during the second half of
the month as producers seek to
stimulate ordering activity.
March/April 2023
37
polymer prices
€/kg
2023
Sustainable Plastics - March/April 2023

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