Sustainable Plastics - March/April 2024 - 29

polymer prices
Producers face growing
resistance to planned price hikes
S
tandard thermoplastics
prices have taken
a sharp upturn over
the last two months
due to higher feedstock costs,
and, in the case of polyolefins,
bottlenecks arising from shipping
delays in the Red Sea.
In February, polyolefin prices
took a surprisingly sharp
upturn, especially as both the
ethylene and propylene reference
prices increased only
slightly higher. Polyolefin markets
became concerned about
the supply implications of cargo
delays and rising logistics costs
around the Red Sea following
attacks on commercial shipping
by the Houthis. Consequently,
producers were able to ask for
triple-digit price increases without
too much resistance.
Polystyrene prices increased
in line with the €190/tonne increase
for the styrene monomer
reference price.
PET packaging prices began
February with price gains but
ended the month with an overall
decline because of an influx
of cheap Asian material and a
smaller rise than expected for
the paraxylene reference price.
Base PVC prices were stable
following a small rise in the
cost of ethylene; PVC compound
prices increased around
€20/tonne because of higher
additive costs.
Polyolefin prices continued to
soar well above the €30/tonne
and €35/tonne respective rises
for ethylene and propylene
during the first two weeks of
March. Polystyrene prices also
soared for the second successive
month due to a sharp rise
in the cost of benzene.
Base PVC prices increased
in proportion to the rise in ethylene.
PET prices are softening
further due to growing pressure
from imports and low demand.
Supply tight
The attacks on commercial
shipping in the Red Sea have
led to the late arrival of cargos
Ineos' Lillo site
Prices Monitor March 2023 - March 2024
PET PVC LLDPE HDPELDPEPPPS
3.0
2.5
2.0
1.5
1.0
from Asia, rising freight rates
and tighter supply, particularly
for polyolefins. There is however
now evidence that freight
rates are falling back from the
heights seen in January.
European polymer output remains
tight across all polymer
classes as producers maintained
low run rates. A number
of planned and unplanned
plant outages, particularly affecting
the polypropylene sector,
have also been announced
to further restrain supply.
A summary of the latest supply-related
market developments
are summarised below;
* Polypropylene imports into
Europe from the US could be
disrupted as force majeure was
called on 10th March at Invista's
Kansas site due to a technical
issue
* Sabic reported an unplanned
outage at an undefined European
PP site on 7th March
which will likely impact mainly
PP film grades
* Repsol declared force majeure
5th March for polypropylene
from its site at Tarragona,
Spain due to unforeseen technical
issues and temporarily
suspend its supply agreements
for the polymer
* Versalis announced that its
styrene plant in Italy will be shut
down mid-April for maintenance
* Ineos declared force majeure
at the Lillo, Belgium HDPE
plant on 31st January due to
some technical issues
* TotalPC announced that its PP
plant in Gonfreville, France was
taken offline for maintenance.
PET
PVC
Demand low
Demand has barely recovered
since the start of the new year
and remains well below what
would normally be expected as
the first month of spring is now
upon us. A few end use markets
are however slowly sparking
back into life; including packaging
film, pharmaceutical packaging
and profile extrusion.
However, the overall sentiment
remains weak amid uncertain
economic times; most converters
are buying just enough material
to meet their immediate
production needs.
LLDPE
HDPE
LDPE
PP
PS
Outlook
Converters will push for lower
price increases over the remainder
of the month. Their
cause will likely be supported
by lower demand due to the
Easter holidays and improved
supply from the expected arrival
of imports.
March/April 2024
29
€/kg
2023
2024
Sustainable Plastics - March/April 2024

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