European Engineering Polymer & Recycle Grades
|Month: May 2015|
|R-PET Flakes Clear/Blue||800||900|
|R- HDPE Black Pipes (PIR**)||950||1100|
|R- HDPE Black Corrugated Pipes (PIR**)||900||1000|
|R- LDPE Film (PCR*)||750||950|
|R- LDPE Film (PIR**)||1100||1200|
|R- homo-PP black injection (PIR**)||1000||1200|
|R- homo-PP injection (PIR**)||1150||1200|
|R- PPBC black injection (PIR**)||920||1070|
* (post consumer recycle)
** (post industrial recycle)
In May, PC prices posted around €100-150/ton hikes over April. Supply remained short for European origins and some players received only half of their allocations. Market sources reported that a West European producer nominated hikes of €400/ton on their June PC prices. Trinseo also announced hefty increases of €430/ton for June citing higher raw material costs and poor margins in the PC industry over the past couple of years, according to a statement on the company’s web site. Players in the spot market expect these massive hikes to be issued on a quarterly basis. For June, expectations are centered on increases of €150/ton given tight PC supply, a firm US dollar parity as well as a lack of imports from Asia.
PA6 and PA6,6 prices posted increases of around €150/ton from late April. Supply remains tight, especially for PA6,6, and players project another round of increases for June. Sellers received a good number of price inquiries this month and some distributors sold out their monthly allocations in the spot market. Meanwhile, mixed expectations emerged for June. Regarding PA6, players project a stable to firmer trend as June benzene contracts settled €111/ton lower from May and supply is in balance with demand. As for PA 6,6, market sources reported shorter availability, due to a force majeure on ADN and HMDA production from the US last month and some production issues experienced by a German PA 6,6 producer. Despite lower benzene settlements, players project further price hikes from €50/ton to €150/ton on PA 6,6, pointing to short supply. Meanwhile, butadiene contracts settled up €45/ton for June.
Regarding styrenics, the firming trend slowed down notably in May after the styrene contract settled with minor hikes of €20/ton from April. SAN prices increased €40-60/ton from April, while EPS prices were stable to €20/ton firmer. SAN supply is very tight in Europe. Some buyers booked their monthly volumes at an open price, while a few other buyers reported facing delivery delays from a couple of West European producers. For June, SAN prices will follow the styrene trend. June styrene contracts settled up €20/ton from May at €1410/ton FOB NWE today. Competitive Asian cargoes coming to Europe and softer benzene costs are expected to put a cap on any hike attempts in the spot market. Meanwhile, EPS prices registered €30/ton hikes in early May, but these were revised later in the month, posting rollovers to €20/ton hikes from April. In the GA market, supply remains tight and producers are mainly focusing on their regular customers. In the spot EPS market, some converters received slight discounts from early May due to slow demand and inventory pressure, adding that they project a softer trend as of June. However, expectations shifted in the last days of May due to shorter availability for styrene and the slightly higher styrene settlements is expected to lend support to EPS prices.
European PMMA prices were mostly stable for May both in the spot and contract markets. Players reported comfortable supplies and smooth deliveries. Overall demand was regular. In the import market, a Taiwanese origin increased by €350-400ton in May, while prices were steady for a Japanese origin. In the distribution market, some sellers claimed that the spot PMMA market is contracting. According to them, PMMA consumption declined as many converters are electing to use PC, which has more properties at similar prices. Meanwhile, market sources project a largely stable trend for the June-August quarter.
In the local market, PBT and POM prices were rolled over for another month in May. In the import market, Far Eastern POM prices increased €50/ton last month. Demand is regular and no supply issues have been reported.
For recycled grades, R-PET Flakes prices were stable to €20/ton higher in May. Players reported that supply was comfortable and R-PET prices mainly followed the prime PET trend. R- HDPE Black pipes posted increases of up to €100/ton, while R-LDPE film posted smaller hikes of €50/ton as buyers showed resistance to higher prices. According to market sources, supply is extremely tight for prime material as well as for scrap, while demand is weak but appears to be sufficient given short supplies. Meanwhile, R-PPBC (PIR**) prices were up by €20-50/ton for May, while R-PPH (PIR**) prices increased €50-100/ton from April. Players reported short supplies for both R-PPBC (PIR**) and R-PPH (PIR**).
Price ranges reported include an average freight cost to the customers’ location as well as duties if applicable, although VAT is not included.
This update for the new ChemOrbis monthly report “European Engineering Polymer & Recycle Grades” is available on Plastics News for promotion this month and will later be moved to a separate section, subject to an additional charge.
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