European Engineering Polymer Update
|Month: December 2015|
PC prices followed a stable path for another month in December. Most players reported that PC prices have stabilized ahead of the year end after posting sharp decreases compared to the summer. A buyer only reported small reductions on extrusion grades. Most converters will be absent from the market from December 18 to January 7 for the Christmas Holidays. January expectations are calling for mostly stable prices even though feedstock costs are decreasing.
Players reported that PA6 and PA6,6 prices were mostly steady for December after registering some decreases over the past two months. Sellers reported that PA6 offers below €1400/ton received by a few converters are fading away from the market. Caprolactam costs are stable to €20/ton softer for December. A South European producer will have planned maintenances on PA6 and PA 6,6 at the end of the year, but supply will be sufficient to cover demand considering that December is a shorter month. Trading activity is slowing down ahead of Christmas while the automotive sector is performing well and PA demand is in line with December 2014. For January, sellers are mulling over price increases on PA6 and PA6,6, pointing to higher costs and the stronger dollar.
SAN prices tracked a stable to €30/ton firmer trend during December after the styrene contract settled €35/ton higher. Asian origins mostly retained their November levels while European producers were seeking slight increases of up to €20-30/ton.
EPS prices also faced upward pressure from higher styrene. Initial December offers emerged with increases between €35/ton and €50/ton, supported by short availability, but most deals have been closed in line with the monomer hike of €35/ton. A distributor quickly closed his December sales, pointing that his Central European supplier provided him limited allocations. Demand was good in December, driven by short availability. Players anticipate EPS tightness to persist in January. According to the distributor, the next month’s outlook is stable as tight supplies could counterbalance lower feedstocks and crude oil costs.
For PMMA, prices remained stable during the last quarter of 2015, except for slight downward adjustments of €10-20/ton in a few cases. December has been a shorter month in terms of trading activity. The January outlook is mostly stable while a buyer expects slight reductions for Q1.
POM and PBT prices were unchanged from November. Demand is slowing down ahead of the year end as many converters will stop production for some days during the 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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