Engineering Polymers - Europe June 2016
|Month: June 2016|
PC prices followed a stable trend for another month in June. A seller reported that European producers were aiming for increases, but he added that competitive South Korean offers from the import market kept European prices in check. Players reported that offers below €2100/ton were available for Asian origins. Supply is said to be good whereas demand is still slow. The outlook is steady for the upcoming month.
PA6 and PA6,6 prices tracked a mostly steady path in June. June benzene contracts settled with a decrease of €27/ton from May at €572/ton. Meanwhile, May caprolactam contracts in Europe were announced with rollovers from April given strong demand and dwindling supply due to some ongoing and upcoming turnarounds. Initial June contracts have been nominated with rollovers to decreases of €5-10/ton. Players reported that ample supply for PA6 resulted in a notably narrower gap between caprolactam costs and nylon 6 prices. Some sellers reported that competitive offers below €1500/ton were available from a South Korean producer. A few buyers reported obtaining slight reductions of €20/ton from May on their June deals after negotiating with their suppliers. Availability for PA6 and PA6,6 is still ample even though some players observed a small reduction in supply for PA6,6 due to some maintenance shutdowns. Buying interest is good, with a buyer stating that his end product demand has increased by around 17-18% compared to 2015 in the first six months of this year. The buyer expects demand to grow further during 2016. No major changes are awaited for July and the outlook is mostly stable.
SAN prices emerged with increases of around €40/ton at the beginning of the month for European origins after styrene contracts up €60/ton from May. However, deals were mostly closed with rollovers afterwards. Players confirmed that competitive offers were available from Far East Asia. Demand was good and no supply issues were reported for the month. For July, the outlook is weak as styrene contracts are awaited lower and the projected decreases will be reflected to SAN prices.
EPS prices emerged with rollovers to increases of €10-20/ton from May. At the beginning of the month, stronger hikes requests were reported following the styrene settlements. Buyers purchased mainly on a needs only basis and reported that they would wait until July in anticipation of lower prices. Demand was quite slow while EPS supply was good. Players reported that availability wasn’t affected by the strikes in France at the start of June. The outlook is soft for next month and styrene contracts are expected to register up to three-digit decreases.
PMMA prices tracked a stable trend for another month in June and quarterly prices have been confirmed by producers. Players reported that monomer costs are increasing in Europe, stating that this could pave the way for hike requests for PMMA prices in the last quarter of the year. Supply and demand dynamics are balanced. The outlook is mostly steady.
POM and PBT prices haven’t registered any notable changes in the first six months of the year. Supply is good and demand is regular. The outlook is stable for July.
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