Sustainable Plastics - September/October 2022 - 41

polymer prices
Prices plunge on weak demand
and lower feedstock costs
Energy cost
surcharges
check price
reduction in
September
L
ower feedstock costs
and disappointing demand
pushed European
standard thermoplastic
prices further downward
across the board last month.
Polyolefin prices fell by considerably
more than the reduction
in raw material costs. L/
LDPE prices fell by €120/tonne
compared to the €70/tonne fall
in the August ethylene cost
settlement. HDPE prices fell by
slightly more on wider material
availability. PP prices fell between
€100-120/tonne against
a reduction of €85/tonne for
the propylene contract price.
The base PVC prices reduction
also exceeded the
proportionate impact of lower
ethylene costs with notations
tumbling by €65-70/tonne.
PVC flexible and PVC rigid
compound prices fell by slightly
less than base PVC prices as
a result of lower additive costs.
The styrene monomer reference
price plummeted by a
monthly record of €509/tonne
in August and this resulted in PS
price settlements down between
€450-500/tonne. PET prices
also slumped up to €200/tonne
due to lower costs, abundant
supply and disappointing sales.
Demand low
Demand was much lower than
would normally be expected
Prices Monitor September 2021 - September 2022
PET PVC LLDPE HDPELDPEPPPS
0.5
1.0
1.5
2.0
2.5
3.0
during the summer holiday period
across all material classes.
Fear of recession and high
price levels meant that most
converters purchased just sufficient
material to cover their
immediate production needs.
The automotive and building &
construction sectors were especially
reluctant to buy.
Supply adequate
Supply was ample to meet the
low demand across all product
sectors in August despite
production cutbacks and plant
outrages. Converters were also
able to purchase a growing
volume of competitively-priced
PE, PP, PVC and PET imports
from Asia and the Middle East
as freight rates eased.
Reports of producers shutting
down facilities due to the
high costs in Europe are on the
rise. These include Dow Chemical,
and a similar approach
has reportedly been taken by
SABIC for its European PP homopolymers
production, with
demand instead being met with
imports. Polynt, the specialty
polymers and intermediates
producer, announced 4 September
that it was to shut down
its Italian lines to get a handle
on the costs being caused by
the high energy prices.
Vynova, Europe's third largest
PVC producer, has begun
reducing output due to high
gas prices and weak demand.
All three of the company's
PVC lines in the Netherlands,
Germany, and France - and
possibly the backward-integrated
VCM lines - are affected
by the change.
September trend
In September, resin producers
made it clear that they want to
retain part of the decreased
feedstock cost. Whether or
not they succeed remains to
be seen.
LyondellBasell has announced
an energy surcharge
for LDPE, HDPE, and PP in
September, amounting, for
now, to €160/tonne. Other
polyolefin producers plan to retain
at least part of the drop in
raw materials costs for PE and
PP - currently between €4080/tonne
- either within the
total or, as with LyondellBasell,
by way of an energy surcharge.
The ethylene and propylene
contracts fell by €120/tonne
and €165/tonne, respectively,
in September.
L/LDPE, HDPE and PP are
PET
PVC
LLDPE
HDPE
LDPE
PP
PS
falling by less than the reduction
in feedstock costs during
the first two weeks of September
due to production cutbacks
by producers and weak
demand. PVC prices continue
to fall as competitively-priced
imports and low demand pile
further downward pressure on
European producers.
PS prices have fallen on average
by around €255/tonne
following a sharp reduction in
both the benzene and ethylene
contract prices. PET prices
are trading lower following
a decline in feedstock costs,
low demand and the ongoing
pressure from imports. Elevated
utility costs may however
check possible PET drops.
September/October 2022
41
€/kg
Sustainable Plastics - September/October 2022

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