Sustainable Plastics - September/October 2022 - 42

polymer prices
European petrochemical feedstock contract prices; May - Sept 2022 (€/tonne)
JUNE
JULY
Ethylene
Propylene
Styrene
Benzene
Paraxylene
LLDPE
In August, LDPE and LLDPE prices both
fell by €120/tonne, which was significantly
more than the decline of €70/tonne in the
cost of ethylene. Material continued to be
well supplied while demand from various
end use sectors continued to disappoint.
Demand was lower than would normally
be expected during a summer holiday period
amid growing economic uncertainty
and the squeeze on consumer purchasing
power. Converters mostly tended to work
from stocks and purchase only to meet
their immediate production needs.
While there was suff icient material available
to meet the slack demand, production
cutbacks and maintenance turnarounds
kept a lid on supply. Imports from the Middle
East and Asia were also widely available.
Prices are falling in September, although
less than expected as producers' factor in
rising energy costs. The September ethylene
contract price settled €120/tonne lower.
HDPE
PVC
In August, HDPE price reductions once
again far exceeded the €70/tonne decline
in the ethylene reference price with settlements
for all types down by €120-130/
tonne compared to the previous month.
HDPE production has been cut back by
less than other PE materials and a good local
supply was supplemented by a steady
stream of imported material.
Demand was far less than would normally
be expected during the summer. The
automotive and building & construction
sectors, were in particular, reluctant to buy
amid growing fear of recession.
In September, HDPE prices are falling
by less than was originally expected.
Producers appear to have retained a
proportion of the €120/tonne reduction
in ethylene cost to compensate for rising
energy prices. European HDPE producers
have stepped up production cutbacks,
but supply is supplemented by a steady
stream of imported material.
42
September/October 2022
In August, base PVC prices fell by around
€65-70/tonne, which far exceeded the proportionate
€35/tonne reduction in PVC production
costs from the €70/tonne fall in the
cost of ethylene. PVC flexible and rigid compound
prices fell by slightly less than base
PVC prices as a result of lower additive costs.
Market demand was lower than would
normally be expected during the summer
as fear of a recession grew. Converters
bought just enough material to cover their
immediate production needs.
While compounders reduced production
in response to the low demand, there
was more than enough material available
from local producers and from imports.
PVC base resin and PVC compound
prices fell again during the first half of September.
High stocks at producers, competitively-priced
imports and low demand are
piling further downward pressure on European
PVC prices.
PET
In August, PET buyers were looking for
price relief following a reduction of €95/
tonne to the July paraxylene and MEG
contract prices. Accordingly, PET prices
slumped by up to €200/tonne due to an
abundant supply and disappointing sales.
PET demand remained rather sluggish last
month despite the hot summer weather and
drought conditions in many parts of Europe.
Converters preferred to draw down stocks in
anticipation of further sharp price rebates.
Supply was more than suff icient to meet
the low demand, despite production cutbacks.
There was also a growing volume
of very competitively-priced imports from
Asia and the Middle East due to an easing
in freight costs.
PET prices are falling further in September
following a decline in feedstock costs,
low demand and the ongoing pressure
from imports. Elevated utility costs may
however check the PET price reduction.
1,595
1,600
2,185
1,394
1,545
1,495
1,480
2,340
1,780
1,450
PP
PP prices also fell much further than the
€85/tonne reduction for the propylene
reference price in August due to weak demand
and abundant supply. Homopolymer
injection moulding and homopolymer film
prices fell by €120/tonne and copolymer
injection prices were €100/tonne lower.
Demand has slowed down noticeably
over the summer as converters become
more wary of the likely impact of a recession.
There was more than suff icient ,material
available to the European market despite
production cutbacks and production outages.
There was also a plentiful choice of
lower-priced imp[orts.
PP prices fell further during the first two
weeks of September after the propylene
reference price settled €165/tonne lower.
Demand shows no sign of a recovery amid
growing fear of a recession. While producers
have made further production cutbacks
to prevent a build-up of stocks, availability
remains well supported by imports.
AUG
1,425
1,395
1,831
1,117
1,280
SEPT
1,305
1,230
1,544
799
Not available
Source: Sustainable Plastics. Note: *September paraxylene contract price not settled at time of writing.
PS
The styrene monomer reference price
plummeted by a record €509/tonne in August,
largely the result of a crash in benzene.
Producers initially targeted a price
rebate of €400/tonne, but very weak demand
meant that producers had to concede
rebates of €450-500/tonne.
PS demand was weaker than would normally
be expected during the summer. The
wide price diff erential between PS and PP
continues to encourage material substitution
while the fear of recession grows.
PS producers have implemented production
cutbacks in view of the weak demand
while import volumes remain quite low.
PS prices have again fallen sharply
during the first two weeks of September
after benzene and ethylene contract prices
settled much lower. Material availability remains
under control with production cuts
in place and imports remaining low. There
were few signs of a significant upturn in
demand by mid-month.
-120
-165
-287
-318
CHANGE AUG/SEPT
€/tonne

Sustainable Plastics - September/October 2022

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