Update: New data source
Since the launch of Price Know-how in 2013 the data for the Styenics, Polyolefins and Engineering Polymer price baskets have been sourced externally. In 2023 this approach was reviewed and following careful evaluation it has been determined that Plastribution’s own internal data source provides equivalent information with the advantages of not requiring currency conversion and of being based upon actual UK transactions.
In order to provide continuity, the internal data will be applied to all polymer pricing information contained within Price Know-how from February 2024 onwards.
We hope that you continue to value the Price Know-how publication and we always welcome any suggestions you make.
Overview
Prices in the polymer market look somewhat rangebound. Much that sellers would like to increase prices to cover increased feedstock costs, and the expense of shipping goods around the Cape of Good Hope, in order to avoid the terrorist issues affecting the Red Sea route, buyers appear to be able to secure materials at favourable prices. Perhaps, what is noticeable is that the many of the low-price bargains have disappeared from the market and this has caused the polyolefin and styrenic baskets to tick up slightly.
A potential exception in this situation is PP, where the combination of restricted feedstock, and limited availability of the more specialised grade slate, which tends to be more oriented to European polymer production, may give sellers strong enough supply/demand fundamentals to push through further increases. The tighter supply of PP may be situation that the market may have to adjust to, as the increased penetration of US origin PE, will dampen demand for EU produced ethylene from expensive Naphtha, from which C3 is a co-product for PP production.
The engineering polymer and styrenic polymer markets remain steady, with demand remaining moderate from key sectors such as automotive, E&E and industrial.
There is some suggestion that packaging markets are starting to improve, as destocking throughout the whole supply chain finally starts to ease.
Crude oil prices look set to increase further with some players forecasting that Brent Crude could soon hit $95 per barrel, on the back of supply concerns. Clearly further crude oil cost increases are likely to be reflected in feedstock costs, which in turn will place inflationary pressure on polymer producers.
Monomer Price Movement
Feedstock
Price per Tonne
Change (contract)
C2 (Ethylene)
£1,260.00
£40.00
C3 (Propylene)
£1,145.00
£45.00
SM (Styrene Monomer)
£1,821.00
£44.00
Benzene
£1,268.00
£37.00
Brent Crude (monthly average)
£501.53
£18.00
Exchange Rates
€
1.17
$
1.27
€/$
1.09
Mike Boswell
Managing Director – Plastribution Group
Oil Prices
No Data Found
Exchange Rates
No Data Found
UK Economic Data
Topic
Item
Date
Change
Trend
GDP
Real GDP (Q on Q)
Q4 2023
£566,626
PMI
UK Manufacturing PMI
March
50.3%
UK Output
Manufacturing Index
Q4 2023
101.5%
Sales
New Car Registrations (Y on Y)
March 2024
545,548
Sales
Retail Sales (Y on Y)
February 24
118.4%
Labour
Unemployment Rate
Nov 23 – Jan 24
3.9%
Prices
CPI (Y on Y)
February
3.4%
Prices
RPI (Y on Y)
February
4.5%
Interest Rates
Bank of England Base Rate
March
5.25%
Polyolefins
Polyolefin prices are quite mixed in April with different approaches depending on the supplier and the grade. Despite monomer increases of +€40 / MT on Ethylene C2 and +€45 / MT on Propylene C3, most suppliers adopted a rollover position as availability improved and demand remained muted. However, some suppliers did still push for a monomer increase citing poor availability from their own limited production. This appears to be limited to PP as European supplies continue to be impacted by Force Majeures and reduced output. PE supply is, however, quite good with low-cost imports starting to appear giving the buyer a stronger hand than in recent months.
Because of these imports, LLDPE and HDPE grades are under price pressure and are seeing discounts from March levels. However, many buyers expected these reductions and held off buying in March, so demand is perhaps slightly better than expected as some look to replenish low stocks.
Outlook into May and June is for relatively good availability to keep prices under pressure with further slight reductions expected.
We should keep in mind that there are some potential uncertainties soon that can upset availability of both raw materials (monomers) and polymers. Several cracker shutdowns in Europe have been announced recently that will affect monomer production locally. We also see an uncertain situation in geopolitics that could affect oil pricing.
The US Hurricane season typically starts in June and reports suggest this year could be a bad one impacting availability of imports, particularly on LLDPE and HDPE
Ian Chisnall
Product Manager – Polyolefins
Polyolefins Feedstocks
£/Metric Tonne by month
No Data Found
LDPE
Supply
Demand
LDPE supply has improved recently and prices have either rolled over with producers accepting they can’t push through a monomer increase or they have reduced as some producers look to improve market share.
LLDPE
Supply
Demand
C4 LLDPE has generally seen some reductions in April as availability significantly improved and the supply / demand balance shifted in the buyer’s favour. More imported material arrived following the delays with the Red Sea issues.
More material is expected to arrive in May and June beyond local requirements and this should put further pressure on pricing going forward. Reductions are varied depending on the starting point but are typically in the range of €40-80 / MT. Hexene grades have seen similar reductions but Metallocene perhaps not as much as producers sought to restore some “value” to the higher performing grades.
HDPE
Supply
Demand
HDPE is like LLDPE and has generally seen reductions of around €50 / MT as the lower cost imports from USA and Middle East return to the European market. Traders have been active in trying to move stock in anticipation of further shipments arriving in the coming months.
Buyers have the upper hand for now and can expect further discounts in the next few months. Beyond that is perhaps a little more uncertain as market dynamics may change.
PP
Supply
Demand
PP market is the most dynamic in the Polyolefin sector with some grades still reported as tight and some producers looking for the monomer increase.
Homopolymer injection has seen increases and Copolymer is variable with some slight discounts available but also some increases of €50 / MT reported. Generally, the market feels about rollover with some deals potentially available, but PP is not suffering as much from lower cost imports when compared to PE.
Other Polyolefins
EVA pricing has largely rolled over with some discounts similar to LDPE available. Polyolefin Elastomers are typically rollover.
Styrenics
Small Rise for Contract Styrene, Polymer prices stable.
Styrene Monomer has risen again, settling at €1821/T, an increase of €44/T from March.
For April, EU GPPS and HIPS has shown a small increase or rolled over, with EU ABS showing slight increases. Deep sea materials are steady. Prices are expected to remain high until May at the earliest, where a reversal could begin.
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.
Andrew Waterfield
Product Supervisor – Styrenics
Styrenics Feedstocks
£/Metric Tonne by month
No Data Found
PS
Supply
Demand
March saw a €222/T increase in Styrene monomer, and PS followed. Producers did not pass on the full increase, possibly in an attempt to maintain demand.
April slowed the upward trend, with SM rising by a further €44/T, which has been applied to some PS prices. Supply and demand are both low, so remain in equilibrium. Due to this supply chains are empty; any price changes are immediate.
ABS
Supply
Demand
Composite Monomers are still trended upwards in March (SM +€222/t, butadiene +€75, ACN +€15). Supply and demand were still low, but availability improved, as far eastern materials, delayed by red sea issues, began to arrive.
April brings some small increases (SM +€44/t, butadiene +€70, ACN +€43), but as demand remains stagnant producers may not have the luxury of passing this on in full. A Spanish plant is out of action due to maintenance, but the oversupply situation still stands.
PC/ABS
Supply
Demand
As usual, PC/ABS price is following the trend of ABS.
Other Styrenics
SAN and specialities such as ASA and Q Resin continue to follow the price trend of ABS.
Engineering Polymers
Prices increasing for most engineering materials, but demand remains weak especially in the automotive sector so these rises could prove difficult to pass on.
The Benzene contract for April increased by a further €37/MT to €1268/MT, the highest level it has been since July 2022.
Sharron Jarvis
Product Supervisor – Engineering Polymers
Engineering Polymer Feedstocks
£/Metric Tonne by month
No Data Found
PA6
Supply
Demand
European producers are reducing output in the hope that they can push through the raw material increases in a weak market. However, there is little appetite to buy and little stock building activity.
PA66
Supply
Demand
A similar picture to PA6, significant increases, however with extremely low demand it is unlikely that they will manage to pass on the full cost of rising raw material prices.
POM
Supply
Demand
The POM market has become extremely competitive with low demand and plentiful inventories, producers are looking for deals to secure market share.
PC
Supply
Demand
PMMA
Supply
Demand
Price increases announced for Quarter two on the back of increasing MMA costs. Demand in the automotive sector remains very weak so it could prove difficult to recoup these costs fully.
PBT
Supply
Demand
Weak demand, therefore only minor changes expected.
Other Engineering Polymers
Most materials continue to be impacted by the challenges of the Red Sea situation. Prices are rising due to this and increased costs for raw materials.
Sustainable Polymers
Most recycled materials have seen around rollover in April in line with prime prices generally moving in that direction.
Ian Chisnall
Product Manager – Sustainability
Recycled LDPE / LLDPE
Supply
Demand
Most materials continue to be impacted by the challenges of the Red Sea situation. Prices are rising due to this and increased costs for raw materials.
Recycled HDPE
Supply
Demand
Recycled HDPE also typically rolled over with some reports of deals available as availability continues to be good with demand dropping in the face of much improved prime supply.
Recycled PP
Supply
Demand
Recycled PP typically saw rollover with some movement either side. Clear grades suitable for consumer packaging continued to command significant premiums over prime and in some cases continued to rise this month. More “industrial” grades continued to see slightly muted demand and good availability. Some deals for volume were reported with reductions.
