Sustainable Plastics - October 2021 - 41

polymer prices
European petrochemical feedstock contract prices; August and September 2021 (€/tonne)
June 21 July 21 Aug 21 Sept 21 Change Aug/Sept
€/tonne
Ethylene
Propylene
Styrene
Benzene
Paraxylene
L/LDPE
In August, the higher naphtha cost and the
risks for supply in Central Europe due to
the flood disaster led to an increase of €53/
tonne in the ethylene contract price. Nevertheless,
L/LDPE prices continued to slide
despite lower feedstock costs. A small price
decline at the start of August became much
stronger as the month progressed. Overall,
LDPE film grades prices fell €70-80/tonne
with LLDPE prices down by €100/tonne.
While supply from local sources remained
quite low, higher imports improved material
availability. Most converters were able to
secure the volumes they needed with some
gaining additional quantities. Demand was
strong across most end-use sectors despite
the summer holidays in southern Europe.
Following an €8/tonne reduction in the
ethylene contract price, LDPE prices had
fallen €10/tonne by mid-September with
LLDPE down by €30/tonne on improved
availability.
HDPE
In August, the higher naphtha cost and the
risks for supply in Central Europe due to
the flood disaster led to an increase of €53/
tonne in the ethylene contract price. While
price development varied considerably, the
overall picture was for a further price slide,
despite lower feedstock costs. Blow moulding
material fell around €50/tonne with
blown film and injection moulding down by
€40/tonne.
While supply from local sources remained
quite low, higher import volumes
improved material availability. Most converters
were able to secure the volumes
they needed with some gaining additional
quantities. The summer break curtailed
polymer demand in southern Europe but
otherwise sales were generally quite good,
with particularly solid demand from the automotive
and construction industries.
In September, blow moulding and blown
film prices were unchanged with injection
moulding down €20/tonne by mid-month.
1080
1065
1549
884
770
1120
1115
1341
816
825
PP
In August, PP prices continued the downswing,
despite a €58/tonne rise in the propylene
contract price. Market participants
saw this curious price development as a
result of the very high price levels and the
adverse impact on demand of the summer
holiday season. PP homopolymer injection
prices fell around €30/tonne with homopolymer
film and copolymer injection
grades down by €15/tonne compared to the
previous month.
Material availability improved slightly aided
by higher import volumes and the restart
of a key production line in the Netherlands.
Demand was better than would normally be
expected for August. Surplus supplies due
to lower demand in southern Europe as a
result of August holidays were diverted to
buyers in central and northern Europe.
In September, homopolymer and copolymer
injection prices had fallen €10/tonne with
homopolymer film unchanged by mid-month.
PVC
PVC prices increased for the fourteenth
month in a row in August driven by continued
material shortages. Prices were up by
more than the proportionate ethylene cost
increase with base PVC resin prices climbing
€35/tonne. Rigid PVC compound prices
increased by €45/tonne driven by higher
white titanium dioxide pigment costs. Flexible
PVC compound prices were up by only
€20/tonne with no significant change in
plasticiser costs.
The holiday season in southern Europe
released some surplus material for consumption
in central and northern Europe
but overall supply was very tight. The construction
sector was once again the main
demands driver.
In September, continued material tightness
and good demand led to a further increase in
PVC prices. More force majeure notifications
and plant maintenance programmes kept
supply low. By mid-month, base PVC resin
prices had increased €35/tonne.
1173
1173
1377
917
842.5
1165
1168
1286
836
n.a.
*paraxylene contract for September not settled at time of writing Source: Sustainable Plastics
PS
PS prices turned upward again in August
following two months of falling prices.
The styrene monomer reference price increased
€36/tonne in August due largely
to a sharp rise in the cost of benzene.
PS prices rises initially tracked the SM
cost rise but the pace of price increases
dropped as the month progressed mainly
as a result of softer demand. At the end of
the month general-purpose polystyrene
(GPPS) prices were €20/tonne higher
compared to July closing levels.
GPPS supply has improved significantly
during the summer and is virtually
back to normal. Demand was low mainly
as a result of the holiday season in
southern Europe.
By mid-September, GPPS prices had
fallen in line with the sharp €81/tonne
downturn in the cost of styrene monomer
with high-impact grades down slightly less
due to rising butadiene prices.
PET
PET prices turned upward in August driven
by rising feedstock costs and a lack of
imported material. The paraxylene contract
price, which usually settles late in
the month, was agreed €55/tonne higher
at end July. PET producers were able to at
least factor in the proportionate increase
in costs, of around €40/tonne.
The predominantly dull summer weather
and the ongoing pandemic restrictions
across many European countries continued
to restrain demand for PET beverage
bottle production. PET production was being
trimmed in line with the disappointing
demand while Asian imports were rarely
seen due to the Inflated freight costs coupled
with severe container shortages.
PET prices continued to rise in September
and by mid-month were €20-30/
tonne higher compared to August. Diminishing
availability across the region and
a lack of imports amid shipment issues
were the key price drivers
October 2021
41
-8
-5
-91
-81
n.a.

Sustainable Plastics - October 2021

Table of Contents for the Digital Edition of Sustainable Plastics - October 2021