Sustainable Plastics - May/June 2022 - 34

polymer prices
European petrochemical feedstock contract prices; April - May 2022 (€/tonne)
Feb
Ethylene
Propylene
Styrene
Benzene
Paraxylene
L/LDPE
L/LDPE producers pushed through further
exorbitant price increases in April due to
higher feedstock and energy costs. Following
the rise of €230/tonne in the ethylene
contract price, L/LDPE producers
called for price hikes of €250-300/tonne,
depending on suppliers' production levels
and the extent to which an energy surcharge
was passed through in the previous
month. In April, L/LDPE deals settled
€200-250/tonne higher compared to the
previous month.
Production remained at normal levels
and suppliers were in most cases able to
fulfil contractual obligations. Uncertainty
caused by the war in Ukraine coupled with
very high prices curbed demand. Some
converters even extended the Easter break
due to the high prices and the uncertain
outlook.
In May, L/LDPE prices fell close to the
€50/tonne reduction in the ethylene contract
price during the first week of trading.
HDPE
In April, HDPE producers called for a significant
price hike of €300/tonne as a result
of higher energy costs and an increase of
€230/tonne in the ethylene contract price.
However, producers settled for price increases
of around €200/tonne for most
standard-grade material due to subdued
sales. The very high price level has deterred
many converters from ordering any more
material than is absolutely necessary.
There were few production issues affecting
HDPE plants in April and there
was sufficient material available to meet
demand. As the spring plant maintenance
season is about to move into full swing,
supply is likely to tighten over the next few
months.
In May, HDPE prices fell around €40-50/
tonne during the first week of trading due
to the €70/tonne reduction in ethylene,
growing imports arriving in Europe and
low demand.
34
May/June 2022
In April, PVC producers announced sizable
planned price hikes ranging from €185/
tonne to €250/tonne. This reflected an energy
surcharge, plus the 50% cost passthrough
from ethylene, which rose by €230/
tonne. Base PVC resin prices increased
€200/tonne by the end of April.
Regional PVC supply remained low as
a result of several planned and unplanned
plant outages. Imports from Asia were also
down due to the production restrictions as
a result of the zero COVID policy of the Chinese
government.
Record price levels are curbing demand.
Converters are struggling to pass through
the higher energy prices onto most of their
customers and are only buying additional
material to meet their immediate needs.
PVC prices finally turned downward
for the first time since mid-2020 in early
May trading. Base PVC prices fell €30-35/
tonne as lower demand outweighed tightening
availability.
1,340
1,355
1,632
984
1,005
Mar April
1,435
1,450
1,725
1,004
1,005
PP
In April, PP producers responded to the
€225/tonne hike in propylene costs by
calling for a price increase of €300-350/
tonne to cover both the higher feedstock
and energy costs. The PP sector was also
unnerved by the prospects for gas supply
as a result of the Russia-Ukraine war. By
the end of the month, however, PP prices
had increased in line with monomer cost.
Buyers baulked at the exorbitant prices
being asked at the start of the month
and refused to negotiate. By mid-month,
however, buying interest recovered as
PP producers reluctantly backed down
from their initial price stance. On the
supply side, there was sufficient material
to meet demand, although the upcoming
plant maintenance season is likely to
tighten availability.
Decreases of around €100/tonne were
reported during early May trading following
the €70/tonne fall in propylene costs.
PVC
PET
In April, the surge in bottle-grade PET prices
started to ease with only modest gains of
around €10/tonne being seen.
While supply remained tight in April
as a result of maintenance turnarounds
at plants in Southern Europe, there was
some slight easing in material availability
elsewhere. Imports from the Far East were
down as European buyers shunned Chinese
material due to the ongoing logistics
backlogs and late shipment terms.
The war in Ukraine is casting a shadow
over normal expectations for a seasonal
upturn in PET bottle demand. Converters
are limiting their polymer purchases to a
bare minimum and continue to face difficulty
in passing through cost increases to
their customers.
This month, PET prices are likely to soften
following a rollover for the April paraxylene
reference price and lower monoethylene
glycol costs.
1,665
1,675
2,085
1,130
1,165
May
1,595
1,610
2,169
1,175
N/A
Source: Sustainable Plastics. Note: May paraxylene contract price not settled at time of writing
PS
PS prices hit a new record level in April,
surpassing the previous high set in May
2021. Producers tabled planned price
increases between €415-430/tonne.
The bulk of the rise stemmed from a
€360/tonne increase in the April styrene
monomer reference price settlement and
the rest from an energy surcharge. For
April as a whole, PS prices increased
by slightly more than the feedstock
cost rise.
Material availability has tightened as a
result of production issues and a cutback
in PS output. Demand faltered in April due
to the sky-high prices, the Easter holidays
and the shorter working month. Many
processors are having trouble passing
through higher costs to end users and are
cutting back on purchases.
This month, PS producers have announced
planned price hikes of €90-120/
tonne after the styrene monomer cost
rose by another €84/tonne.
-70
-65
84
45
N/A
Change April/May 22
€/tonne

Sustainable Plastics - May/June 2022

Table of Contents for the Digital Edition of Sustainable Plastics - May/June 2022