Sustainable Plastics - November/December 2023 - 28

polymer prices
Feedstock costs drive
prices in balanced markets
E
uropean standard
thermoplastic prices
are closely following
feedstock cost developments
in well-balanced
markets.
In October, standard thermoplastic
prices continued on
an uptrend following a further
rise in raw material costs and a
tightening supply situation.
L/LDPE prices settled with a
triple-digit increase over September
levels, well above the
€65/tonne rise for the ethylene
contract price and supported
by more stringent supply restrictions.
HDPE availability
was not quite so tight as in the
L/LDPE sector and so price
increases were in the range of
€70-75/tonne.
PP and PS prices also registered
gains in line with the respective
increase of €60/tonne
in the cost of propylene and styrene
monomer. PET and PVC
upstream costs also increased
in October, yet producers mostly
failed to achieve much-needed
margin gains because of
persistently weak demand.
Standard thermoplastic prices
fell across the board during
the first week of November
largely because of a reduction
in feedstock costs. In well-balanced
markets, prices are expected
to continue on a downward
trajectory during the rest
of the month.
L/LDPE and HDPE prices
are falling close to the €45/
tonne reduction in the cost of
ethylene. PP prices are also
down in line with the €40/
tonne fall in the propylene reference
price.
PVC prices are down following
a pro-rata reduction of
€22.5/tonne in the cost base
following the €45/tonne reduction
in the cost of ethylene. PET
producers remain under severe
margin pressure with very low
demand and rising costs. PET
prices are expected to decline
this month after the October
paraxylene contract price fell
by €50/tonne.
28
The Trinseo plant
in Terneuzen
Prices Monitor November 2022 - November 2023
PET PVC LLDPE HDPELDPEPPPS
0.5
1.0
1.5
2.0
2.5
3.0
Demand low
In October and into early November,
polymer demand remained
well below what would
normally be expected for the
season. In view of the economic
uncertainty around Europe and
the weakness in most end-use
markets, converters are buying
just sufficient material to meet
their immediate production
needs. Converters also reacted
to the rising price trend by calling
off stocks which had been
built up in their warehouses
during the summer. Polymer
demand is unlikely to recover
during the rest of the year.
November/December 2023
Supply tightens
In October and into November,
material availability for
L/LDPE and PP tightened as
producers reduced operating
rates even further so as
to avoid a buildup of excess
stocks. Producers of other
polymer classes have also
maintained reduced plant operating
rates.
In the PET sector, the first
plant shutdown was observed
in September and JBF Industries
announced the closure
of one of its PET lines in Geel,
Belgium, in October for economic
reasons. Imports have
maintained a strong presence
in the PET sector. Imports of
L/LDPE, PP and PVC are less
widely available than in previous
months.
A selection of the latest supply-related
developments are
summarised below:
* Trinseo announced that it
will stop making styrene and
ethylbenzene at its plant in
Terneuzen, the Netherlands,
on 1 November.
* JBF Global Europe announced
the temporary shutdown
of one of its PET plant in
Geel, Belgium, in October because
of high costs and weaker
demand.
* BP announced force majeure
for propylene and ethylene
production at its facility in Germany
on 6 November.
* BASF announced a temporary
shutdown for styrene at its
German production facility on
24 October.
PET
PVC
LLDPE
HDPE
LDPE
PP
PS
November outlook
Polymer prices are expected
to continue falling in step with
the feedstock cost reduction
over the rest of November.
Demand will remain well below
normal levels until the
end of the year and producers
will keep a brake on plant
operating rates to ensure a
continuation of well-balanced
markets.
€/kg
2023
Sustainable Plastics - November/December 2023

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