Polymerupdate European resin pricing, Oct. 5-9: PE, PP, PVC, and PS all slip lower

High-density polyethylene (HDPE) contract prices were down in Europe last week, reports plastics pricing service Polymerupdate. Injection molding contract prices were at €1110/tonne FD North West Europe levels while HDPE blowmolding and HDPE film contract prices were at the €1110/tonne and €1090/tonne FD North West Europe levels, respectively.

In the spot markets, HDPE injection molding, blowmolding and film prices were at €990/tonne, €960/tonne and €980/tonne FD North West Europe levels, respectively. The price declines were driven by softer demand in the region coupled with a drop in ethylene feedstock prices.

However, HDPE sellers in Europe, when polled, appeared bullish in their outlook going forward. They opined that a recovery in demand last Friday in Asia, with the return of China from the weeklong National Day holidays, sent out positive signals to other markets, while production problems at some European facilities also hinted at possible supply issues.

Among supply issues, SABIC Europe reported one of its two lines at its 350,000-tonne/yr HDPE plant at Geleen, the Netherlands had shut down about 10 days ago due to a technical problem. Although the plant has since restarted, production had already been lost. Moreover, PE units at the Gelsenkirchen, Germany site of SABIC were running at lower levels due to some feedstock supply issues from BP Refining and Petrochemicals. Also, Borealis had shut its 170,000-tonne/yr HDPE unit in Austria.
 
Low-density polyethylene (LDPE) prices in Europe were lower last week as demand stalled. In contract markets, prices of LDPE were down at €1115-€1125/tonne FD North West Europe and FD Italy levels. Prices of LDPE fell in spot markets, too, to €950-€960/tonne FD North West Europe levels. Competitively priced offers from the Middle East and from Asia added to the bearish pressures on European LDPE rates, reported Polymerupdate.

Linear low-density polyethylene (LLDPE) prices dipped in Europe last week, too, also due to soft demand and lower ethylene prices. Prices were down both in the spot and contract markets. While in the spot markets, prices of LLDPE were down at €930-€940/tonne FD North West Europe levels, contract prices of LLDPE were at €1100-€1110/tonne FD North West Europe levels. There are indications prices could rise, though.

Polypropylene (PP) buyers, meanwhile, celebrated a dip in spot prices, but saw no change in contract prices. In contract markets, homopolymer injection molding grades were at €1085/tonne FD North West Europe and FD Italy levels while PP copolymer prices were at €1135/tonne FD North West Europe and FD Italy levels.

Prices in the spot markets continued to dip with PP homopolymer prices down at €860/tonne FD North West Europe levels while PP copolymer prices were seen at €910/tonne FD North West Europe levels.

Despite the price fall, buying interest through most of last week remained muted. Processors cited competitively priced offers from Asia, the Middle East, and the U.S., plus a drop in local propylene feedstock prices, as reasons why they were in no rush to commit to purchases from local PP suppliers and sellers.

Sellers however believed that the declining trend in PP would soon halt in Europe. Not only was Asia showing early signs of a recovery in demand with Chinese buyers returning with their orders post holidays, they said, but so, too, were crude futures along with naphtha prices showing signs of strength while actual user inventories of PP across Europe remained thin.

Polyvinyl chloride (PVC) contract prices last week were unchanged from the week before at the €975-€995/tonne FD North West Europe range. A handful of buyers claimed to have settled their October contracts at levels below those done in September, but Polymerupdate was unable to confirm that.

Ethylene prices were down in Europe while PVC imported from the U.S. at competitive prices was available in Europe. Supply is expected to increase as Ineos ChlorVinyls lifts the force majeure on deliveries. Regardless of supply, demand for PVC remained weak in Europe. In the spot markets, PVC prices slipped with suspension grades offered at €790-€810/tonne FD North West Europe.
 
In Turkey, PVC prices slipped sharply last week. Offers from the Far East were down at $875/tonne CFR Turkey levels.

Polystyrene (PS) prices slipped both in contract and spot markets. In contract markets, general-purpose PS prices was available at €1180/tonne FD North West Europe while high-impact PS prices was to be had for €1240/tonne FD North West Europe. Reports that BASF had announced a decrease in its contract prices for October of €30/tonne from September settlement levels supported the lower prices in European contracts.

In spot markets, prices of PS in Europe fell with GPPS down at €990/tonne FD North West Europe while HIPS prices were €1050/tonne FD North West Europe. One PS supplier told Polymerupdate that, with energy prices climbing, benzene and SM feedstock rates rising, and early signs of buying activity re-emerging in China, it seems a good bet hat PS prices will rise in the near-to-mid-term. —[email protected]