Sustainable Plastics - July/August 2022 - 33

polymer prices
Polyolefin prices slump on weak
demand and rising imports
I
n June, a combination of
weak demand and improving
supply led to a
further decline in European
standard thermoplastic
prices, despite little change to
monomer costs.
Polyolefin prices saw the biggest
price reductions. Polyethylene
and polypropylene price
developments bore no relation
to monomer cost settlements.
The ethylene reference price
settled at a rollover with propylene
settling down by €10/tonne.
LDPE prices fell by €170/tonne,
LLDPE prices fell by €150/tonne
and HDPE prices were down by
€150/tonne. Homopolymer and
copolymer PP prices declined
by €200/tonne.
Polystyrene prices either
rolled over or fell slightly after
the styrene monomer reference
price increased €16/
tonne. It was a similar picture
for base PVC prices, while flexible
PVC compound prices fell
as a result of lower plasticiser
costs.
PET prices turned upward
in June following a rise of €75/
tonne in the paraxylene reference
price. However, a growing
volume of cheaper imported
material limited price increase
to €40/tonne.
Demand weak
In June, polyolefin demand
was particularly weak although
other polymer classes also experienced
lower sales volumes
than would normally be expected.
Converters took a cautious
approach given growing
economic uncertainty, soaring
energy costs and rising inflation.
Buyers were also holding
back from making additional
purchases as prices were
widely expected to drop further
in July.
The construction sector
boom appeared to be flagging
while the automotive sector
remained weak. The economic
uncertainty also weighed
heavily on packaging and
TotalEnergies facility in
Gonfreville, France.
Prices Monitor June 2021 - June 2022
PET PVC LLDPE HDPELDPEPPPS
0.5
1.0
1.5
2.0
2.5
3.0
in Schwechat, Austria, is much
more serious than initially assumed.
A complete restart and
full utilisation of the refinery can
only be assumed for August or
September 2022. It remains unclear
exactly what this means
for the cracker, which is a key
supplier of ethylene and propylene
for polyolefin plants at
OMV unit Borealis;
* TotalEnergies declared
force majeure 21st June for EVA
production at its domestic facility
in Gonfreville, France.
consumer goods markets. The
beverages sector, on the other
hand, saw a surprise demand
upturn in June.
Supply improves
The supply situation has improved
across all product
sectors since early summer as
several production plants are
now back on-stream following
outages. In the polyolefin
sector, most production facilities
are operating without
interruption. While a number
of PVC and styrenics production
plants were not fully operational,
there was sufficient
material available to meet low
level of demand.
Local supply was supplemented
by a growing volume of competitively-priced
imported material
across most product classes.
A selection of the latest supply-side
developments in polymer
markets are summarised
below;
* Covestro declared force
majeure for styrene on 4 July
due to the breakdown of the
production plant jointly operated
with LyondellBasell in Maasvlakte,
the Netherlands;
* Borealis declared force majeure
5 July for cracker products
from Stenungsund, Sweden. Borealis
cited a technical issue as
the reason for the outage'. The
damage to the OMV refinery
July outlook
In July, polymer price trends
are showing a mixed picture.
Polyethylene and polypropylene
prices are declining by triple-digits
following respective
reductions of €100/tonne for
the ethylene reference price
and €120/tonne for propylene.
Polyolefin prices are under added
pressure from imports and
lower holiday season demand.
PVC prices are also coming
under pressure from the ethylene
cost fall and lower seasonal
sales.
The styrene monomer refPET
PVC
LLDPE
HDPE
LDPE
PP
PS
erence
price increased €155/
tonne following higher ethylene
costs and a surge of
€386/tonne in benzene costs.
Sellers are confident of achieving
a small price premium over
the SM cost rise.
PET prices are also expected
to increase as paraxylene costs
are rising sharply.
July/August 2022
33
€/kg
Sustainable Plastics - July/August 2022

Table of Contents for the Digital Edition of Sustainable Plastics - July/August 2022
