Sustainable Plastics - March/April 2023 - 39

polymer prices
European petrochemical feedstock contract prices; January 2023 to March 2023 (€/tonne)
DEC
JAN
Ethylene
Propylene
Styrene
Benzene
*Paraxylene
L/LDPE
In February, L/LDPE producers attempted
to push through price increases to fully
compensate for the €85/tonne rise in the
ethylene contract price. However, in view
of the weak demand, sellers had to settle
for gains of around €60/tonne.
Demand was well below what would
normally be expected as converters
bought just sufficient material to cover
their immediate production requirements.
At the same time, supply improved a little
but still remained low because of production
cutbacks.
In March, L/LDPE producers attempted
to factor in the €30/tonne rise in ethylene
costs. LDPE prices had increased by €20/
tonne by mid-month while LLDPE prices
matched the cost increase. Supply has
tightened because of planned and unplanned
plant shutdowns while imports are
less available due to delays in shipping from
Turkish ports. While demand is recovering
slowly, it remains below normal levels.
HDPE
In February, HDPE producers were unable
to factor in the full €85/tonne rise in
ethylene costs because of weak demand.
Blow moulding and injection moulding
prices increased by €60/tonne with blown
film prices rising by €50/tonne.
Demand was well below what would normally
be expected for the time of year as
converters bought just sufficient material to
cover their immediate production requirements.
There was a slight uptick in orders
from the automotive and food industries,
but call-offs from the beverage industry remained
below expectations. On the supply
side, US imports compensated for production
cutbacks by local producers.
In March, producers asked for the whole
€30/tonne rise in ethylene costs to be
passed on to converters. By mid-month,
few deals had been agreed but buyers
were pushing for lower price settlements.
Supply has tightened and demand still lags
behind normal levels.
1,270
1,170
1,425
667
N/A
1,175
1,075
1,540
812
1,090
PP
In February, the size of PP price increases
shrank as the month progressed. PP prices
increased by €80/tonne during the first
two weeks of February following a similar
rise for the propylene reference price. Towards
the end of the month, however, prices
were rising by only €40-60/tonne.
Producers continued to operate their
plants at a low run rate as demand remained
well below normal. There was,
however, a plentiful supply of imported
material from the Middle East. Demand
weakness persisted as converters only
bought enough material to cover their immediate
production needs.
In March, producers called for price increases
matching the €30/tonne rise in the
propylene contract price. By mid-month
few deals had been settled but indications
are that prices were rising by €2030/tonne.
Supply is tightening because of
planned and unplanned plant shutdowns
and lower imports.
PVC
In February, PVC sellers sought to factor
the pro-rata ethylene cost increase of
€45-50/tonne into their price negotiations.
In most cases, however, producers were
unsuccessful to this end because of weak
demand and improved material availability.
However, base PVC prices increased for
the first time in nine months by an average
of €20/tonne. PVC compound prices
increased by €5-10/tonne.
While demand remained below expectations,
there was a slight overall improvement
in February compared with January.
Sufficient material was available despite
production cutbacks. Imports were less
widely available and were becoming more
expensive. PVC producers asked for a small
price increase during the first two weeks of
March. In most cases, however, they had
to accept a price rollover because of a developing
supply surplus. Seasonal demand
has increased but remains below normal for
the time of year.
FEB
1,260
1,155
1,550
920
1,070
MARCH CHANGE FEB/MAR
€/tonne
1290
1185
1437
919
N/A
Note: *Contract is fixed retroactively at the end of each month. Source: Sustainable Plastics
PS
In February, polystyrene producers' attempts
to raise prices following a €10/
tonne increase for the styrene monomer
reference price were only partially successful
in certain cases. Instead, prices either
remained unchanged at the previous
months level or fell slightly. PS producers
continued to operate their plants at reduced
rates. There was, however, sufficient
supply due to imports and weak demand.
PS prices tumbled during the first two
weeks of March following a reduction of
€113/tonne for the styrene monomer reference
price. Producers initially managed to
keep the price reduction to below the cost
reduction. However, low demand could
possibly push prices even lower as the
month progresses. Demand from end markets
remains very weak, and converters
are only buying enough material for their
immediate needs. Despite PS producers
maintaining production cutbacks, stocks
remain on the high side.
PET
The much-delayed December paraxylene
contract price was finally agreed at the beginning
of February with a €195/tonne decline.
PET producers were initially forced to
offer triple-digit price concessions following
the lower cost settlement and competition
from lower-priced imports. However,
by mid-month, import prices increased
sharply and demand also picked up 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 market
uncertainty. By the end of February, PET
prices had fallen by €70/tonne.
The European PET market was more
stable at the beginning of March. Demand
appeared to be picking up as converters
restocked ahead of the beverage bottle-making
season. Import prices were less
competitive compared to European offers.
Overall, PET prices were either stabilising
or increasing slightly against last month.
March/April 2023
39
30
30
-113
-1
N/A
polymer prices
Sustainable Plastics - March/April 2023

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