Market Report Plastics - December 2012
Information about the market for plastics is being presented by:
bvse - Bundesverband Sekundärrohstoffe und Entsorgung e.V.
1. The market for primary plastics
The economic situation in Germany is complicated. On the one hand, the atmosphere is getting ever gloomier; on the other hand, both domestic and foreign demand are stabilising production. Nevertheless, the ifo Business Climate Index for commerce and industry in Germany climbed again from 100 to 101.4 points for the first time, subsequent to having fallen six times in a row. Companies are taking a markedly less pessimistic attitude towards further business developments. The German economy is bracing itself against the eurocrisis.
In November and December, the demand for standard plastics and technical plastics has continued to decrease. Plastics processors expect prices to decline further, and they are still showing restraint with respect to making purchases. There is a large supply of all standard plastics. Even though precursor prices have held their own or slightly increased, plastics quotes have fallen again in December.
The November Price Index showed price reductions of 20 €/t to 140 €/t in all standard plastics. The slightest price decrease, namely from 20 €/t to 30 €/t, was listed for PS. The average price of the ten types of plastics listed by EUWID was 1420 €/t; thus, it fell by 64 €/t compared to the previous month. In November the following prices were quoted for standard plastics according to EUWID: LDPE film grade 1360 - 1420 €/t, LLDPE film grade 1340 - 1400 €/t, HDPE injection moulding 1360 - 1430 €/t, HDPE blow moulding 1360 - 1430 €/t, PS crystal clear 1580 - 1620 €/t, PS high impact 1710 - 1750 €/t, PP homopolymer 1350 - 1440 €/t, PP copolymer 1400 - 1490 €/t, PVC tube grade 1170 - 1210 €/t and PVC film/cables 1270 - 1310 €/t. The PET markets are characterised by considerable supply and restraint in demand.
2. The market for secondary plastics
The first summarising report shows that the 2012 economic year can only be assessed as having been a difficult time for plastics recyclers. Takeovers and reorganisations continue to reduce the number of plastics recyclers. Dual systems increasingly interfere with market behaviour by taking over plastics recycling companies. Individual startups cannot offset the market changes observed with respect to turnover and recycling quantities. The first two quarters were rather favourable in regards to orders; however, the last two quarters have been characterised by caution and a lot of hesitancy in placing orders for recyclates. In 2012, recyclates, in addition to primary goods, have more or less held their own.
Both the EUWID November Price Watch and plasticker show price stability. In November and December, the secondary markets have remained in a waiting position. In November the price decline in primary goods had no more than a minor impact on secondary goods. The demand for plastics was still relatively stable in November. However, the quotes for processing goods from the domestic and foreign markets outweighed the related demand. Plastics re-processors and recyclers showed hesitancy in placing purchase orders. Plastics re-processors accepted higher quality grades only. In December, the number of orders is expected to decline further. This time recyclers are making their arrangements for a longer Christmas break.
Bale good sales to China have faltered several times in 2012. Only high-quality goods are accepted by the People’s Republic of China. At this point, is should be expressly emphasised once again that the People’s Republic of China attaches great importance to quality, which it ensures by employing tight border controls. Containers are rejected by the customs authorities as early as at the European export harbours. In November and December, there have been reports on an increase in the film quantities purchased.
2.1 EUWID Price Watch
In November, the EUWID Price Watch ultimately indicated price stability with respect to used plastics. In total, the price changes in select quality grades were reported to be inconsistent. The price changes discernible were only marginal: the price increases ranged from 10 €/t to 20 €/t, while there were price decreases of 5 €/t to 50 €/t.
PE: There were no more than six price changes, and these were inconsistent. As far as post-industrial PE is concerned, the quote for HDPE mixed colours and natural fell by 10 €/t each in the higher price range: HDPE mixed colours 470 - 630 €/t and HDPE natural 630 -740 €/t. There were reports on four – equally inconsistent - price changes in post-user PE: in the higher price segment, the price of LDPE shrink film mixed colours rose by 10 €/t, to attain 230 – 310 €/t; the price of film transparent natural < 70 µm increased in the lower price segment, to reach 390 – 420 €/t. The prices of film transparent mixed colours < 70 µm decreased by 60 – 140 €/t, whereas the price quoted for LDPE farm film b/w > 70 µm fell by 30 – 60 €/t.
PP: The supply of high-quality secondary materials is more considerable than the related demand in the PP market, too. The price of film is 10 €/t to 20 €/t higher and individual regrind materials have fallen by 10 €/t to 30 €/t. The quotes have changed as follows: film mixed colours (K 59) 130 - 300 €/t, film natural (K 50) 300 - 420 €/t, homopolymer mixed colours 430 - 600 €/t and copolymer mixed colours 440 - 600 €/t.
PS prices were very stable for a very long time. However, in November polystyrene prices yielded to the pressure caused by the following two factors: firstly, the price decrease in primary materials; secondly, the decline in PS for packaging, for the building industry and for electrical and electronic equipment. The price decreases ranged from 30 €/t to 50 €/t. In November the quotes changed as follows: standard mixed colours 500 - 640 €/t, high impact mixed colours 600 - 650 €/t, high impact black 600 - 650 €/t and high impact white 670 - 850 €/t.
As far as post-industrial PVC is concerned, the slump in the building activity, caused by the current season, is now having a more considerable impact. The prices quoted for post-industrial PVC have decreased by 20 €/t in the lower price segment for: PVC_U mixed colours 400 - 580 €/t and tube grade mixed colours 480 - 560 €/t. In the area of PVC window frame regrind, the price of window frame regrind white has fallen by 10 €/t in the higher price range; it is now quoted at 620 – 730 €/t.
Calmer PET markets: The markets can be described as being calm and as - still - being complicated. There is a sufficient supply of bottles available in Europe. Recyclers have been provided with a sufficient supply for purchasing purposes. As far as possible, recyclers are producing regrind in line with demand. Since September the price listed for PET in the EUWID Price Watch has held its own: PET transparent 340 - 400 €/t and PET mixed colours 160 - 210 €/t. Processors expect a trend towards declining prices for the next three months.
2.2 plasticker price index
The quotes published by the plasticker internet platform on an hourly basis have been included in the tables below. However, the prices quoted merely reflect an interim situation rather than the final December listings. On 12 November 2012, the average price indicated by the plasticker internet platform equalled that for the previous month. On 12 November 2012, technical plastics prices fell by 46 €/t on average.
Standard plastics
The November quotes, which attained 659 €/t on average, approximately equalled those for October (with 646 €/t). The demand for standard plastics, too, approximately equalled that for the previous month. The November Price Index showed both price cuts of 20 €/t to 140 €/t and price rises of 10 €/t to 90 €/t. LDPE regrind fell by 140 €/t compared to the previous month. The number of quotes for regrind from PVC_U was too low to ensure the statistical relevance of the price increase of 190 €/t, which had been determined based purely on calculations: according to plasticker the following price quotes changed by more than +/- 40 €/t compared to the previous month: LDPE regrind -140 €/t, PP bale goods +90 €/t, PP regranulates -80 €/t, PS regranulates +50 €/t, PVC_U regrind +70 €/t and PET regrind mixed colours - 80 €/t.
According to the first forecast of the current December quotes, whose final listings cannot be published until January, the average price is likely to attain 653 €/t, which involves price stabilisation. The demand for standard plastics has fallen in December.
Table 1: Prices of standard plastics in plasticker, quoted in €/t
*: Supply figures too low to attain statistical significance; 1: equivalent to the grade “post-industrial, mixed colours”; 2: equivalent to K49; 3: equivalent to K59; 4: equivalent to “standard, mixed colours”; 5: equivalent to the grade “regranulates, black”, 6: forecast (likely to be amended by additional quotes)
Technical plastics
In November, technical plastics prices more or less held their own. The November Price Watch shows six price rises, namely by 20 €/t to 190 €/t, and five price reductions of 10 €/t to 80 €/t. The purchasing demand was still considerable in November. According to plasticker, the following listings changed by more than +/- 70 €/t: ABS regrind +80 €/t, PC regranulates -80 €/t, PA 6 regranulates -80 €/t, PA 6.6 regrind +190 €/t and POM regranulates -70 €/t.
The first forecast of the current December quotes, whose final listings cannot be published until the beginning of January, shows that prices are likely to fall by 46 €/t on average. The supply figure for November approximately equalled that for October. In total, the long-term trend of technical plastics towards gradually declining prices continues.
Table 2: Prices of technical plastics in plasticker, quoted in €/t
5: equivalent to the grade „regranulates, black“. 6 forecast (may be amended by additional quotes)
No guarantee for any of the prices. All EUWID prices are quoted ex works. As a rule, the prices quoted refer to quantities in excess of 20 tons. The monthly quotes for secondary plastics, which are updated on an hourly basis, can be calculated using the price lists that are derived from the quotations published in the raw material exchange plasticker. The prices listed in this index are quoted with reservation - as the majority of the quotes submitted are not necessarily equivalent to the sales prices. Furthermore, plasticker does not distinguish between the following grades: transparent, mixed colours or colour-separated. Therefore, the information provided by plasticker may indicate different market behaviour than the prices quoted by EUWID.
