Market Report Plastics - November 2010
Information about the market for plastics is being presented by:
bvse - Bundesverband Sekundärrohstoffe und Entsorgung e.V.
1. The market for primary plastics
There is an increasing number of favourable reports for the chemical industry, above all for plastics manufacturers. In such a positive prevailing mood, it is certainly not advisable to spoil the party Suprisingly, however, certain lines of industry that are indirect plastics purchasers are acting very hesitantly in this prosperous time.The price stagnation reported in October has continued in November. The average standard plastics prices indicated in the EUWID Price Watch for October have held their own. The global expansion of plastics capacities, which offsets the increasing demand and thus stabilises the prices, has had an impact on standard plastics. In October 2010, the average price of the ten types of plastics listed below was 1274 /t, too. The prices shifted marginally by +/- 10 /t to +/- 20 /t. The following prices are now listed for the ten types of standard plastics: LDPE film grade 1300 - 1330 /t, LLDPE film grade 1260 - 1290 /t, HDPE injection moulding 1150 - 1190 /t, HDPE blow moulding 1150 - 1190 /t, PS general purpose 1290 -1340 /t, PS high impact 1380 - 1344 /t, PP homopolymer 1300 - 1340 /t, PP copolymer 1350 - 1390 /t, PVC tube grade 1140 - 1200 /t and PVC film/cables 1200 - 1260 /t. In October, the price of PET for packaging was 1280 - 1350 /t and thus exceeded the previous month's quote by 40 /t. The increased cost is explained by the continually high demand for PET. A further marked price increase is expected for the November quotation. The boom in PET continues both for bottles and for packaging material.
The EUWID Price Watch for technical plastics showed further price increases in October. The price rises ranged from 50 /t to 150 /t. The demand for technical plastics correlates with the increased demand for technical products. In October and November, there has still been a considerable demand, which has, however, been lower than in the previous months. There is still a lack of demand for technical plastics. The following prices are quoted in the EUWID Price Watch for October: PMMA crystal clear 2400 - 2600 /t, ABS natural 1750 -1850, ABS white/black 1850 - 1950, ABS mixed colours 2450 - 2700, PC crystal clear 2800 -3000 /t, PC GF 3100 - 3200 /t, POM natural 2100 - 2200 /t, PA 6 natural 2200 - 2400 /t, PA 6 black 2200 - 2400 /t, PA 6 GF reinforced 2550 - 2650 /t, PA 66 natural 3000 - 3200 /t and PA 66 GF 3100 - 3300 /t. Experts predict a further series of price increases in a selection of technical plastics.
The prices of plastics precursors increased in October. To date, the fourth quarter has shown itself at its best in North America and Europe with respect to the weather. Every mild autumn and winter day stabilises the energy prices, including the precursor prices, and thus ultimately the plastics prices. However, the end of the building season is already in sight for PVC and EPS, whose prices are expected to decline in the near future. The prices of standard plastics are expected to be stable until this end of this year. The quotes for technical plastics are likely to show a further price increase, albeit to a lesser extent.
2. The market for secondary plastics
The demand for secondary plastics, i.e. for bale goods, regrind and regranulates, continues to be stable at a high level. Standard plastics are largely balanced with respect to supply and demand. The markets have proved to be nearly unchanged compared to the previous month. The price level attained for secondary plastics has held its own. Recyclates are still selling well. High-grade recyclates are low-priced compared to virgin materials. The secondary markets tend to follow the primary markets at a more rapid pace than before; the volatility of the secondary markets is increasing. The secondary markets are expected to stabilise by the end of this year.
The export demand from the Far East has stabilised in October and November. On the whole, the demand for European goods from the Far East is lower than in the pre-crisis years. The Chinese New Year's Festival, which will be held at the beginning of February, will lead to a reduction in demand as early as January.
Experts consider the European and global prospects for plastics recycling to be very favourable. Recyclates are being used very advantageously for production - both in ecological and in economic terms; they supplement the supply of primary goods. High-quality materials in particular are selling well on the global markets. Alongside China, other Asian markets, above all India, are gaining in significance with respect to selling, recycling and processing secondary plastics.
2.1 EUWID Price Watch
The EUWID Price Watch for October proved to be stable with respect to standard plastics. There were only few changes in the plastics quotes compared to the previous month. Most price changes ranged between 10 /t and 30 /t. PE post industrial, PVC post industrial and PVC regrind from crates held their own.
In the October Price Watch, PE post industrial did not change compared to the previous month. PE post industrial sold well and the sales were stable. Above all, there was a considerable demand for regrind; however, this did not affect the prices of this material. There were a few changes in post-user PE. The prices of film came under pressure from the low demand. The October quotes changed as follows: film transparent < 70 ΅m 360 - 390 /t, mixed film (98/2) 360 - 390 /t, mixed film (80/20) 180 - 220 /t, HDPE regrind from crates 510 - 630 /t and HDPE regrind from crates mixed colours 430 - 510 /t. Marked price increases of 30 /t can be reported for regrind from crates.
PP: The high demand in the PP market continues. The PP market is increasingly developing its own profile and emancipating itself from the corresponding PE markets. Above all, there is a considerable demand for regrind. In October, the price of PP film mixed colours (K59) exceeded the previous month's quote by 20 /t in the upper price range, i.e. it was at 80 - 170 /t.
PS: Actually, the building activity, which is likely to decline in the near future, should have an impact on the prices. However, in fact the secondary market is following the influences from the primary markets with a relatively brief time lag, which has led to price increases of 20 /t to 50 /t: standard crystal clear 490 - 580 /t, standard white 470 - 570 /t, high impact white 520 - 730 /t. There is a great demand for high-grade PS recyclates.
PVC: The PVC markets are benefitting from the stable demand in the building and construction sector, too. The price increase in the primary markets is further stabilising the PVC quotations for the secondary markets. However, in the case of PVC, this has not led to a change in the quotations.
PET post user: With respect to PET, there is still fierce competition for market conform prices and sufficient processing quality with sufficient quantities. In Europe, there is a trend towards using PET as a packaging material; PET bottles in particular are increasing their market share. In the third and fourth quarters, the seasonal decline in PET quantities has not yet materialised. The markedly lower demand from the Far East is advantageous for PET recyclers in Europe.
In October, the PET quotes increased by 10 /t. The EUWID prices quoted for used and disposable PET bottles are still at record high; they are as follows: PET transparent 390 - 440 /t and PET coloured 220 - 260 /t.
2.2 plasticker price index
The evaluation of the data derived from the plasticker price index for October reveals a trend towards slightly rising prices for the standard plastics quoted. The number of quotes submitted in 2010, however, still falls short of the pre-crisis times. Regrind is quoted at a higher price, bale goods have approximately held their own, and the quotes for regranulates are inconsistent. The prices of PP and PS have increased by 20 /t and 40 /t. The forecast of the November quotes shows a tendency towards slightly rising prices.
Secondary standard plastics
With the exception of PA 6.6 regrind, the prices of technical plastics have increased, namely by 80 /t to 280 /t. The existing demand cannot solely be met by the materials form the primary markets. Considering the past 18 months, the prices of all technical plastics listed hit a record high in October 2010. The following price changes of greater than 70 /t can be reported for October 2010 compared to the previous month: PC regrind 190 /t, PC regranulates 110 /t, PA 6 regrind 80 /t, PA 6.6 regrind 110 /t and PA 6.6 regranulates 280 /t. The forecast of the November quotes shows that the trend towards slightly higher prices is likely to continue.
Secondary technical plastics
*Supply figures too low to attain statistical significance
The 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.Therefore, the information provided by plasticker indicates distinctly different market behaviour than the prices quoted by EUWID.
The EUWID price quotes refer to bale goods or regrind. The given prices were quoted for business transactions between sorting plants and sales agents or the processing industry, as the case may be. As a rule, prices refer to quantities in excess of 20 to ex works. The prices attainable in trade can differ considerably from the indicated price range in both directions, depending on the grade of the type of plastic material quoted. The abbreviations used for some grades refer to the list of waste plastics published by the German Federal Association for Secondary Raw Materials and Waste Disposal (bvse)/Bureau of International Recycling (BIR).
