European Engineering Polymer & Recycle Grades
|Month: June 2015|
|R-PET Flakes Clear/Blue||820||950|
|R- HDPE Black Corrugated Pipes (PIR**)||950||1050|
|R- HDPE Black Pipes (PIR**)||950||1100|
|R- LDPE Film (PCR*)||850||1000|
|R- LDPE Film (PIR**)||1100||1250|
|R- PPBC Black Injection(PIR**)||920||1090|
* (post consumer recycle)
** (post industrial recycle)
For June, European PC producers were targeting increases of €400-450/ton in late May, seeking to recover their margins. In the spot market, PC offers recorded increases of €100-150/ton over May. Distributors reported seeing good demand amidst short supply. Given the absence of some PC producers from the market as well as reduced import availability from Asia, some sellers attributed the strength of demand to supply concerns. Locally-held Asian offers stood at par with European origins after registering similar hikes of €150/ton in June. In the contract market, players reported that producers only supplied to their regular customers, adding that they faced difficulty in procuring extra volumes. A converter confirmed the tightness in the PC market, commenting that his supplier would direct his allocation to another buyer unless he accepted to pay €150/ton hikes on his June deals. For July, some players are projecting a new round of increases considering firmer benzene costs and short supply. However, others think that slower trading activities ahead of August might contain these projected hikes as converters tend to keep their stocks low prior to the holidays.
PA6 and PA6,6 prices stabilized in June after recording three-digit hikes in the previous month. Benzene contracts settled with hefty decreases of €111/ton for June. For PA6, supply and demand was mostly in balance while availability was relatively tighter for PA6,6. In a few cases, PA6 offers posted decreases of up to €50/ton, but sellers mostly maintained their prices since supply was not ample. For PA6,6, initial June prices were stable to €50-60/ton higher on the back of reduced availability following a West European producer’s force majeure declaration. However, most June deals were closed with rollovers. For July, expectations are calling for a stable to firmer trend both for PA6 and PA6,6. Prices might post some increases considering that benzene contracts are expected to settle higher for July. Meanwhile, butadiene contracts have settled with increases of €85/ton from June.
Following the initial barge styrene contracts, which settled up €20/ton from May, initial June prices emerged with increases of €30-50/ton for SAN. However, higher prices did not meet acceptance and sellers revised their spot prices lower later in the month. As a result, late June prices were almost stable from May. Supply and demand was considered to be mostly in balance. Availability for SAN remained tight as converters received their regular volumes, but faced difficulty in procuring extra cargoes. EPS prices tracked a trend similar to SAN in June. European producers initially announced hikes of €30/ton on their June EPS prices, but stepped back from these increases afterwards. By the end of June, EPS prices were mostly stable from May. Players reported that supply was sufficient to meet demand. In the contract market, sellers reported receiving a good number of price inquiries from the packaging and construction sectors. For July, SAN and EPS prices are projected to lose ground as sellers are voicing their expectations of seeing €50-60/ton decreases in the awaited styrene contracts. For styrene, spot prices are down by over $100/ton from early June levels whereas spot benzene prices climbed around $90/ton during the same period.
Players reported that European PMMA prices remained mostly steady from May even though spot prices increased by around €40-50/ton over the past two months in Europe. Asian origins posted moderate hikes in June despite decreasing spot monomer prices in Asia. Distributors commented that demand for PMMA was not strong in the spot market given the current supply levels. According to the sellers, European producers sought to export their cargoes to the US due to the supportive euro/dollar parity while Asian prices offered a quite competitive edge, standing €300-400/ton below European offers. The low ends of the PMMA ranges were formed by Japanese offers pegged at €2100/ton while European prices were reported as high as €2500/ton. For the next quarter, sellers expect PMMA prices to hover at around the current levels. Some converters also voiced their expectations of a stable trend, citing lower production rates ahead of the summer holidays.
PBT prices were rolled over for another month in June in the local market. Demand was stable and no supply issues were reported. For July, players are anticipating a stable to firmer trend. For POM, prices tracked a stable to firmer trend in June. A European producer nominated some increases on their June prices for special grades while rolling over their prices for standard grades. Prices for Asian origins climbed around €50-100/ton, supported by the euro/dollar parity, while offers for European cargoes were mainly steady. Supply was comfortable and no delivery issues were reported. For July, players think that European prices might catch up with the upward trend followed by Asian origins.
For recycled grades, R-PET prices were stable to €20-30/ton higher in June. Some buyers elected to purchase prime PET, considering the reduced competitiveness of R-PET flakes against prime material. According to the buyers, R-PET prices are almost on par with prime PET for now. Supply was tight for both clear and light blue grades while demand was good from the packaging sector. R-HDPE black pipes were stable to up €50/ton from May while R-LDPE film prices posted hikes of up to €50-100/ton. According to players, demand was good while supply was short due to the reduced scraps availability in the market. However, one seller conceded to rollovers for June in order to maintain his business relationship with his customers. Another seller has already started offering R-HDPE black with increases of €50/ton for July after closing his June business up €50/ton from May. June prices for R-PPBC (PIR**) were stable to €20-30/ton higher. Supply remained short for R-PPBC while demand was strong.
Price ranges reported include an average freight cost to the customers’ location as well as duties if applicable, although VAT is not included.
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