Sustainable Plastics - October 2021 - 39

polymer prices
Shortages drive PVC prices
to record high
F
In August, European
standard thermoplastic
price development
varied widely
between the different polymer
classes. Polyolefin prices continued
to trend downward while
polystyrene, PET and PVC
prices moved upward. Polymer
producers, for the most part,
called for price increases at the
beginning of the month following
feedstock increases across
the board. However, with prices
at such high levels, converters
became increasingly reluctant
to order and producers were
forced to make concessions.
In August, LLDPE prices
fell by €100/tonne with LDPE
prices down by €70-80/tonne
despite a €53/tonne rise in
the ethylene contract price. L/
LDPE prices slipped further
in September after ethylene
settled slightly lower. HDPE
prices fell €40-50/tonne in
August although there was a
wide variations between different
grades and even within
grades. By mid-September,
HDPE injection moulding
grades saw further price erosion
while blown film and blow
moulding product prices remained
unchanged.
In August, PP prices fell €1530/tonne
despite a €58/tonne
rise in the propylene contract
price. Homopolymer injection
and copolymer injection prices
had fallen further by mid-September
while homopolymer
film prices remained stable.
PS prices turned upward
again in August after the styrene
monomer (SM) reference
price increased €36/tonne. By
mid-September, PS prices had
fallen almost as much as the
€91/tonne fall in the SM reference
price.
PET prices turned upward in
August and continued to rise
in September driven by rising
feedstock costs and a lack of
imported material.
PVC prices continued to hit
new highs with base PVC resin
HIP Petrohemija,
Pancevo, Serbia
Prices Monitor Sept 2020 - Sept 2021
PET PVC LLDPE HDPELDPEPPPS
0.5
1.0
1.5
2.0
2.5
3.0
increasing by a combined €70/
tonne during August and September
driven by continued
material shortages.
Supply shortages
ease slightly
Material availability for some
polymer classes improved
during the late summer months.
PP supply has improved slightly
aided by higher import volumes
and the restart of a key production
line in the Netherlands.
Similarly, PE supply from local
sources remained quite low but
higher imports improved material
availability. GPPS supply has
improved significantly during
the summer and is virtually
back to normal. PET production
trimmed output in line with the
disappointing demand while
Asian imports were rarely seen.
A summary of the latest supply
issues is presented below;
* Serbian polyolefin producer
HIP Petrohemija declared force
majeure for ethylene supplies
from Pancevo 3 September following
a fire.
* Since 2 September, an additional
plant of the PVC producer
Kem One in Berre, France has
not been functioning. Hence,
types with a K-value of 70 were
unable to be produced.
* LyondellBasell has been experiencing
difficulties in the
production of PP at the Cologne,
Germany site since 20
August and according to reports,
the company has declared
force majeure.
* Sabic Europe announced late
August that it has not, in fact,
lifted its force majeure on polyethylene
from Europe.
PET
PVC
Demand variable
The summer break curtailed
polymer demand in southern
Europe but otherwise sales
were generally quite good for
the month of August, for most
polymer classes. Demand
picked up again as usual in
September with PP, PVC and
LDPE orders higher than would
normally be expected. PS sales
were slower to recover in September
after the holiday season.
The predominantly dull summer
weather and the ongoing pandemic
restrictions across many
European countries continued
to restrain demand for PET beverage
bottle production.
LLDPE
HDPE
LDPE
PP
PS
October outlook
With likely feedstock cost settlements
unclear at time of
writing, polymer price developments
will depend crucially
on whether the supply situation
improves and the extent to
which producers resist buyer
demands for lower prices.
October 2021
39
Sustainable Plastics - October 2021

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