Polymer prices – certain monomer and uncertain polymer price increase
Although feedstock prices would induce a significant, even triple-digit, increase in monomer prices, only minimal olefin monomer and moderate SM price increases are expected due to cautious end-user demand and import shipments arriving in February.
The price of propylene monomer (C3) was published on Friday afternoon. There was a moderate price increase of 15 euros compared to January. This is not surprising, as polymer manufacturers have been communicating to the market since mid-January that they cannot accept a larger olefin monomer price increase, as the market is not open to polymer price increases either. Both BRENT and NAPHTHA prices are up 15% compared to the beginning of January, with only a 1.6% increase in propylene monomer; a similar price increase of €15-25 is expected for ethylene monomer, which is expected to be published on Monday. It can be seen that significant tension remains in the olefin value chain, which is acceptable for monomer producers for the time being because they see the $68-70 oil price as only temporary and expect a correction after geopolitical tensions subside. However, if the oil price remains above 65 euros for a long time, olefin monomer producers will be forced to pass on their cost increases in monomer prices. However, there was a price increase in the intermediates market, with the February contract price of benzene increasing by 130 euros, which could result in a styrene monomer price increase of 50-70 euros.
But it is not only high feedstock prices, but also rising overseas import prices that are supporting the European price increase. In the Far East, PE and PVC prices have increased noticeably. In the case of North American imports, delays or even a few weeks of downtime are expected, depending on the meteorological situation. This can affect HDPE, LLDPE and PVC grades. However, there is no shortage for now, and there is availability from both European polymer manufacturers and importers. Even if a situation similar to the 2021 winter North American import shutdown is repeated, an explosive price increase is not expected due to more subdued European demand. However, in the case of olefin monomers, the postponed price increase will be implemented by monomer producers in March.
-
myCEPPI
myCEPPI provides a weekly price report for commodity plastics.
-
VACULA s.r.o.: Stable supplies of plastic granulates even in uncertain times
In the current complex global market environment, influenced among other factors by geopolitical tensions, many companies are facing uncertainty in supply... -
Lifocolor s.r.o. explains how to choose the right masterbatch granule size
Are you dealing with colour inconsistencies, material segregation in the hopper, or inaccurate dosing? One possible reason may be an unsuitable granule size....
