Plastribution’s Polymer Price Know-How: September 2024
|
Getting your Trinity Audio player ready...
|
Plastribution’s September Polymer Price Know-How report shows a change in the price increases seen in August. As crude oil prices dropped due to concerns over global demand, this decline went through to the polymer markets, causing contract price reductions for ethylene, propylene, and styrene monomers. While benzene saw a small increase, weak demand and ample supply are expected to keep prices under pressure for the remainder of 2024. Despite some tightness in specific polyolefin grades and steady demand for recycled materials, market conditions suggest stability or further price reductions in the coming months.
The positive sentiment that took prices forward in August lapsed as the month came to an end and September got underway. In the background crude oil prices fell as concerns about global demand became more significant. This reduction in crude oil prices passed through into Naphtha, finally resulting in reductions in the September contract prices for C2 (ethylene), C3 (propylene) and SM (styrene monomer), with only Benzene recording a small increase, which may help to support the pricing on some engineering polymers.
The sentiment about prices going forward suggests that demand will remain quite weak and supply healthy and on this basis the downwards pressure on price is likely to continue is the remaining months of 2024.
Monomer Price Movement
Exchange Rates
€- 1.17
$- 1.29
€/$- 1.10
Polyolefins
Ethylene C2 dropping €25 / MT and Propylene C3 down €30 / MT, Polyolefin prices had a mixed start to September. Some continued to think that the market was tight and looked for increases, others proposed a rollover, pocketing the monomer reduction as a much-needed margin improvement. A small very number of producers, looking to restore market share, did offer monomer reductions on some grades. After the first week of wrangling, rollover was very much the order of the day except for LDPE that did see some increases in a slightly tight market.
There are a mixture of factors influencing pricing in the short term. Most likely scenario for the remainder of the year is for prices to be relatively flat with local production trimmed to meet weaker demand. What might pull prices down is lower shipping costs from the Far East leading to a more exports arriving. But in the opposite direction, Hurricanes in the USA could seriously impact production and reduce availability.
Styrenics
Contract EU Styrene steadies, EU polymer prices follow.
Styrene Monomer has fallen by €8T, settling at €1612/T.
For September, EU GPPS, HIPS and ABS has rolled over. Deep sea materials have remained level too.
GPPS/HIPS/ABS supply chains are still running very low. Polymer producers have been running output at a minimum due to poor demand, and converters and distributors running inventory at very low levels due to financial pressures. Therefore, any adjustments in polymer prices are likely to be passed on immediately.
Engineering Polymers
Weak demand and sufficient supply remain the themes for most engineering materials. September has started quietly and it is likely that we will see further cutbacks in production. Producers are looking to do volume deals in the hope to stimulate some appetite to buy. Most supply chains are full, and producers will be looking to offload the inventory that has built up during the summer months.
The September benzene contract settled €18/mt higher than August at €924/mt, but this will have, at best a negligible impact to polymer pricing due to the poor demand.
Sustainable Polymers
Recycled Polyolefins have mostly rolled over in September in line with virgin pricing. Whilst demand for industrial grades is still ok and we see some green shoots of growth, availability is still very good, and prices are keeping a little low in this sector as a result. The high-quality natural grades continue to see strong demand growth keeping prices significantly above virgin.
Recycled LDPE / LLDPE
Recycled LDPE / LLDPE has mostly rolled over in September but the high-quality grades continue to see strong demand and restricted availability leading to some increases being requested.
Recycled HDPE
Recycled HDPE is typically rollover with industrial grades continuing to be under pressure. Natural grades for consumer packaging are in really strong demand still and premiums over virgin are significant.
Recycled PP
Recycled PP is rollover in September, prices still under pressure with availability still good and demand slightly weak. Whilst demand should improve relatively soon with legislation changes in key sectors on recycled content, this has yet to be felt in the market. As with other recycled grades, high quality natural commands a strong premium over virgin.
Price Know-How: September 2024 Full Report
Visit the Price Know-How website to read the September 2024 update, which details each market segment and material group produced by Plastribution’s expert product managers.
Subscribe and keep in the know.
Price Know-How, a decade-long trusted resource in the industry, provides essential updates on polymer pricing and market dynamics. This report is crafted by Plastribution, a leading polymer distributor, in collaboration with Plastics Information Europe.
Price Know-How is tailored specifically for the UK polymer industry, unlike many other price reports. They do all the currency conversions, so you don’t need to!
Please click here to subscribe for free and receive monthly updates directly to your inbox.
Read more on Plastribution here.
