Sustainable Plastics - May/June 2021 - 31

polymer prices
Tight supply and strong sales
drive prices to new highs
E
uropean standard
thermoplastics saw
further massive price
increases over the
last two months, although
the rate of increase is slowing
down. In April, all polymer
classes registered gains well
in excess of the feedstock cost
increases. In May, however,
polymer price rises, still, by
and large, exceeded the relatively
small increases in costs,
but the gap narrowed.
The extremely tight supply
situation eased a little during
May while growing buyer resistance
persuaded sellers to
backtrack and to accept much
smaller price rises.
PE prices have risen €270370/tonne
during April and
May compared to a €45/tonne
rise in ethylene costs. PP prices
have increased €320-370/
tonne over the same period
compared to a €55/tonne
rise in propylene costs. Base
PVC prices have risen €200/
tonne more than the pro-rata
ethylene cost increase, while
PS prices have increased by
€385/tonne, slightly less than
the €399/tonne rise in styrene
monomer costs. Meanwhile,
the upward PET price trend
came to a halt in May.
Supply low
In April, material availability
remained very tight across all
polymer classes as a result of
more plant outages and a lack
of imported material. While
supply remained tight in May,
there was a noticeable easing
in availability.
The latest supply-related
developments are summarised
below.
* Shin-Etsu declared force
majeure (FM) for the production
facilities of Portuguese
subsidiary Cires late
May due to insufficient supply
of vinyl chloride monomer
(VCM)
* Vestolit declared FM for
Prices Monitor April 2020 - May 2021
PET PVC LLDPE HDPELDPEPPPS
0.5
1.0
1.5
2.0
2.5
3.0
PVC from its plant in Marl, Germany
" due to an unforeseeable
production problem "
* LyondellBasell declared FM
on PP supplies from Germany
25 May due to technical issues
* Ineos declared FM at the Geel,
Belgium PP plant April 20 and resumed
operations on 17 May
* SABIC is to shut down its
Netherlands plant for maintenance
for two weeks in May
and June.
* Due to a " safety issue " at
one of the two VCM lines operated
in Tessenderlo, Belgium,
Vynova declared force majeure
on PVC 6 May
* LyondellBasell declared
FM on PP from its Ferrara, Italy
plant 3 May
* Total declared FM on LDPE
from Carling, France on April
16 following disrupted ethylene
availability due to a crack in the
Trans Alpes pipeline
* Ineos declared FM on mLLDPE
supplies from Cologne,
Germany following an unplanned
outage on April 6
* PlastiVerd declared FM on
PET production from El Prat de
Llobregat, Spain on March 26
due to feedstock disruptions related
to the Suez jam
* Ineos declared FM for deliveries
of HDPE pipe and blow
moulding grades from Lillo,
Belgium on 2 April following a
power failure.
Demand mixed
Demand for PE and PVC remained
at high levels during
April and May driven by the
food, beverages, pharmaceuticals
and construction sectors.
PP and PS demand was more
restrained in May as buyers
decided to stop buying amid
widespread expectations of
seeing a reversal in June. PET
demand disappointed as a result
of COVID-19 restriction
measures and the cold weather
across Europe.
PET
PVC
LLDPE
HDPE
LDPE
PP
PS
June outlook
Polyolefin and PVC sellers are
likely to call for further price increases
in June after feedstock
costs for ethylene settled €30/
tonne higher and propylene settled
€40/tonne higher compared
to the previous month. While
supply remains low, lower-priced
PE imports are once again expected
to arrive into Europe,
which could undermine producers'
price hike plans. Also, the
prospects for producers to raise
prices even higher are diminishing
due to buyer resistance. PS
prices should tumble after styrene
monomer costs fell €401/
tonne. PET prices will also be under
further downward pressure.
May/June 2021
31
The PlastiVerd
plant in Spain
Sustainable Plastics - May/June 2021

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