Market Report Plastics - May 2014
Information about the market for plastics is being presented by:
bvse - Bundesverband Sekundärrohstoffe und Entsorgung e.V.
1. The market for primary plastics
Pleasing news from the economy is likely to push up plastics production and plastics processing. The German Association of the Plastics Processing Industry (GKV), cf. www.gkv.de, and TecPart, cf. www.tecpart.de, congruently report on favourable market behaviour. The economic data published by the ifo Institute and by Destatis, the German Federal Statistical Office, are favourable, too. However, a marked resurgence in the plastics industry is not yet in sight, even if this is due to public and school holidays.
Standard plastics: The price listings for standard plastics according to EUWID have almost held their own compared to the previous month. PS quotes have risen by an average 10 €/t, and PP prices by an average 15 €/t. The considerable price slide in the March quotes, which amounted to 23 €/t compared to February, came to a halt in April. In April 2014 the average prices of standard plastics exceeded those of the previous month by 5 €/t. There are differing assessments of the demand for standard plastics. On the one hand, experts speak of satisfactory demand, but on the other hand, they say the demand has fallen compared to the previous month. Some olefins have been in short supply. The slight price rises are also explained by the slight increase in precursor prices.
Technical plastics: According to the April listings, a considerable market impulse was set by technical plastics. The plastics prices rose by 16 €/t in April compared to February. Just as a reminder: in February technical plastics already rose by 22 €/t. In the case of PMMA and PC the lower price limit will be raised by 50 €/t. The average ABS price has increased by 10 €/t. While the quote for PA 6 has risen by 50 €/t in the lower price segment, PA 66 has held its own. There is strong demand for technical plastics. A further boost in demand is expected to occur in the near future.
Table 1: EUWID quotes for technical plastics, published bi-monthly, over the past six months: prices in €/t.
2. The market for secondary plastics
In April, the listings for standard plastics and technical plastics changed only slightly compared to the previous month - they can be assessed as being stable, with a slight tendency towards rising prices. Secondary plastics are following the same trend to a lesser degree. Standard plastics only show slight market fluctuations. However, in the primary market a positive market impulse has been set by technical plastics. This trend is also discernible in the secondary market - albeit to a lesser extent.
The following was reported by the EUWID magazine Recycling und Entsorgung (Recycling and Waste Management), No. 12, in March 2014: German waste plastic exports dropped by 14.5 per cent, to reach 1.29 million tons. This helped plastics recyclers in Germany obtain more material for their plants - albeit, in part, in a poor quality.
Evidence of the effects of the Green Fence Policy pursued by the People's Republic of China has now been provided in the form of the export sales figures for 2013. Exports to the People's Republic of China have fallen by merely 295,000 tons and those to Hong Kong by 327,000 tons compared to the previous year. Business transactions with China have been growing slowly compared to the previous year. However, for economic reasons the demand from China is lower than in the previous years.
2.1 EUWID Price Watch
In April the EUWID Price Watch almost remained unchanged compared to the previous month. It only shows three price rises, namely of 5 €/t or 10 €/t. Bale goods and recyclates are in stable demand, albeit at a low level. There are no significant market impulses for standard plastics.
Even the PET market has proved to be calm. Supply and demand are largely balanced. According to EUWID, the quote for PET beverage packaging remained unchanged in April. The following prices were quoted in EUWID: PET transparent 250-290 €/t and PET coloured 60-95 €/t. As regards PET virgin materials, packaging PET prices fell by an average 20 €/t in April compared to the previous month.
2.2 plasticker price index
The plasticker internet platform publishes quotes on an hourly basis. However, the present market report shows the final monthly prices. The preliminary quotes previously accumulated are only represented during the reporting month in question, in this case for May 2014 - these quotes merely reflect an interim situation that does not become definitive until the following month.
Standard plastics
Since March standard plastics prices have fallen by small gradations. In April the listings for standard plastics fell short of those for the previous month by 8 €/t. The prices of some quality grades changed: for instance, price rises ranged from 10 €/t to 40 €/t, while prices dropped by 20 €/t to 60 €/t. In April demand was slightly lower than in March. LDPE bale goods, LDPE regrind, LDPE regranulates and PVC could be purchased at favourable prices. HDPE regrind reached its highest level since October 2012, attaining 620 €/t. The price of PET regrind mixed colours once again bottomed out. According to plasticker, the following price listings changed by more than +/- 40 €/t compared to the previous month in April: LDPE regranulates - 50€/t, PS regranulates +50 €/t and PET regrind mixed colours - 60 €/t.
The first preview of the May quotes, which cannot be finally reported until the beginning of June, indicates a prospective average price of 587 €/t. Thus, the plasticker internet platform of 16th May 2014 showed a slight decline in standard plastics prices, namely by 6 €/t. In May there has merely been a low demand for standard plastics
Table 2: Quotes for standard plastics in plasticker; prices 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 (may be amended by additional quotes)
Technical plastics
The price slide in technical plastics predicted for March 2014 has become a reality, namely in the amount of 96 €/t. In May there was strong demand for technical plastics. This is indicated, albeit not equally clearly, by the 5 €/t price rise that occurred from March to April and by the 32 €/t rise from April to May. In April technical plastics prices rose by 20 €/t to 90 €/t, while prices fell by 40 €/t to 270 €/t. There was a significant price slide, namely by 270 €/t, in PA 6.6 regranulates! According to plasticker the following price listings changed by more than +/- 70 €/t: PC regranulates +90 €/t, PA 6-regrind - 100 €/t and PA 6.6 regranulates - 270 €/t.
The first preview of the May quotes, which cannot be finally reported until the beginning of June, shows an average price of 1344 €/t. Thus, the quotes indicated by the plasticker internet platform on 16th May 2014 rose by 32 €/t. Technical plastics can still be purchased at favourable prices.
Table 3: Quotes for technical plastics in plasticker; prices 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. Plasticker offers the quality grades regrind and regranulates in the form of both virgin materials and secondary materials.
Bonn, Thursday 5 June 2014, Dr Thomas Probst, bvse
