European Engineering Polymer Update
|Month: November 2015|
For November, PC prices mostly maintained their October levels. The high ends of the range were formed by dutiable Asian origins and European offers while the low ends were formed by non-dutiable Asian origins. Most players reported stable PC prices and sufficient availability for the month. PC demand was regular for most of November, but started to slow down prior to December. A few sources reported slight downward adjustments on the high ends for European origins when closing deals for late November. Offers from Asia tracked a largely stable trend, except for a seller reporting small hike attempts for a dutiable origin in early November. Players are projecting a stable trend for December.
PA6 prices tracked a largely stable path during November, while PA6,6 prices were stable to softer. Some players commented that PA6,6 prices were under downward pressure from the large premium they carried on PA6. A distributor claimed that his West European supplier was giving stable offers for PA6 and PA6,6, but several buyers reported that some European suppliers lowered their prices. Players reported good PA6 and PA 6,6 availability for the month. Another seller confirmed that PA6 prices were mostly stable for November and added that demand started to slow down ahead of December as buyers were keeping low inventories towards the end of the year. Compounders reported regular demand for their end products in November, while they expect to see a slowdown in trading activities ahead of the Christmas holidays. A buyer reported purchasing PA6 with rollovers from October, commenting that the gap between PA6 and PA6,6 has declined. According to the buyer, availability is ample for both products and their suppliers could concede to some discounts towards the end of the year if they feel sales pressure. The same buyer added that their end product demand is performing well, registering a slight increase compared to last year owing to strong car sales. Meanwhile, caprolactam costs are increasing ahead of December and benzene contracts are also awaited slightly higher. However, players think that upstream costs will have a limited effect on PA6 and PA6,6 prices considering that December is a short month in terms of trading activities and some sellers could concede discounts given their high stocks.
November SAN prices remained unchanged from October, on both spot and contract markets. Import offers from Asia are still reported below €1500/ton on DDP basis, delivery in 45 days. For the remainder of the year, players do not expect major changes on SAN costs, pointing that December will be a shorter month.
EPS prices held mostly stable for November despite the monomer drop of €30/ton from October. In a few cases the market registered slight discounts of €10-20/ton, but players mainly reported rollovers from European suppliers, pointing to short supplies. A buyer thinks that producers are not open to negotiating in this period because converters will be eligible to receive additional discounts at the end of the year if they have purchased sufficient volumes for the year and are therefore likely to purchase regular volumes in December. In the contract market, converters mostly confirmed their orders in early November to be sure to receive enough volumes for the month. Some of them have already placed some orders for December because supply is expected to remain tight until the year end. In the spot market, some converters weren’t able to find prompt cargoes, pointing to tight availability in the spot market.
Regarding PMMA, a distributor reported that prices for Asian origins were stable in November. The seller thinks that European suppliers might concede to slight discounts of €10-20/ton at the end of the year if demand proves to be weak. Players are projecting a mostly stable outlook for the remainder of the year. Supply levels are good while demand is slowing down ahead of December as most companies will be closing their plants from December 18 to January 7.
POM and PBT prices were also stable for another month. No particular issues have been reported regarding supply while demand is usually weaker for December, with converters keeping low inventories ahead of Christmas holidays.
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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