Sustainable Plastics - May/June 2022 - 33

polymer prices
Polyolefin prices down
on lower costs
I
n April, European standard
thermoplastic prices
rose sharply once
again following a further
hike in monomer costs. PE
settled in line with the higher
ethylene cost while PP prices
were raised by just less than the
propylene cost settlement. PS
and PVC price levels increased
well above the rise in feedstock
costs. Overall, supply remained
tight while demand faltered
with prices at such high levels.
L/LDPE prices increased
€200-250/tonne, which is in
line with the €230/tonne rise in
the cost of ethylene. PP prices
just failed to match the €225/
tonne increase in the propylene
contract price following strong
buyer resistance.
PS prices increased by more
than the €360/tonne rise in the
styrene monomer (SM) reference
cost. The SM cost spike
reflects the sharply rising cost
of gas and concerns over its future
availability.
PVC prices reached a new
record high in April with a gain
of €200/tonne, which is well in
excess of the proportionate impact
of higher ethylene costs on
PVC production.
Bottle-grade PET prices rose
by just €10/tonne as costs fell
and the tight supply situation
eased a little.
Supply tight
In April, material availability
for PE, PVC and PS remained
limited and, in some instances,
customers were put on allocation.
Styrene monomer supply
has been impacted by the
shutdown in Shell's Moerdijk
cracker in the Netherlands and
production cutbacks at other
cracker plants due to high energy
costs. The PP sector was in
better balance with most contracts
fulfilled. Imports into Europe
from Asia were generally
lower for most polymer sectors
in April as a result of logistics
bottlenecks.
A selection of the latest proPrices
Monitor April 2021 - April 2022
PET PVC LLDPE HDPELDPEPPPS
0.5
1.0
1.5
2.0
2.5
3.0
their respective PVC facilities.
Demand
falters
In April, buyers expressed
growing concerns over a possible
economic downturn and the
very high polymer price levels.
Consequently, many converters
tended to buy only the bare
minimum volumes to meet current
production needs. Some
sectors are performing better
than others, building and construction
and household appliances
continue to outperform,
while ordering from the automotive
sector remains low.
PET
PVC
LLDPE
HDPE
LDPE
PP
PS
duction issues is summarised
below:
* Naphtachimie shut down its
cracker in Lavéra, France,
on 13 April following a leak
in the supply of seawater for
cooling. The Lavéra cracker
is a major supplier of VCM
for four French PVC plants.
* Kem One has placed PVC
customers on allocation
following the disruption
to the ethylene feedstock
chain caused by the Naphtachimie
cracker shutdown.
* Trinseo declared force majeure
on PS production in
Terneuzen, Netherlands,
early April as a result of
technical issues.
* Shell shut down styrene
production at the Moerdijk,
Netherlands, plant on 21
April due to technical problems.
*
Inovyn declared force majeure
for deliveries throughout
Europe on 4 May, which
affects the entire PVC production
at its sites in Belgium,
France, Germany,
Norway, Spain, Sweden and
the UK.
* Vinnolit, Germany, and Kem
One, France, have also announced
force majeure at
May outlook
This month, PE and PP prices
are falling following respective
declines of €70/tonne and
€65/tonne for ethylene and
propylene prices. PE prices
were down around €50/tonne
during the first week of trading
with PP prices down by close
to €100/tonne. PET prices are
also likely to head downward
as feedstock costs fall. PVC
prices also finally turned downward
in May with reductions of
around €30-35/tonne as lower
demand outweighed tightening
availability. PS prices, on
the other hand, are rising by
€65-70/tonne, which is just
less than the €84/tonne increase
in the styrene monomer
reference price.
May/June 2022
33
Innovyn's site
in Norway
€/kg
Sustainable Plastics - May/June 2022

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