Market Report Plastics - June 2014
Information about the market for plastics is being presented by:
bvse - Bundesverband Sekundärrohstoffe und Entsorgung e.V.
1. The market for primary plastics
Plastics Europe, see www.plasticseurope.de, has published a favourable annual balance for the 2013 financial year that is entitled “Favourable annual balance for 2013, but also clouds on the horizon: plastics producers are feeling a mixture of hope and fear”. Overall, 2013 was a good year for plastics producers in Germany: production grew by 1.7 per cent to reach 19.8 million tons, while turnover rose by 5.8 per cent, thus reaching € 26.7 billion. In the domestic market, turnover went up by 3.7 per cent, whereas it increased by 7.5 per cent in the foreign markets. The number of employees remained stable. The foreign trade surplus amounted to 3.7 million tons or € 8.2 billion. Rising energy costs, the crisis in Ukraine and negative connotations of plastics, which are also emanating from current EU policy, are viewed as major risks for the 2014 financial year.
Standard plastics: The price quotes for standard plastics according to EUWID have risen by an average 10 €/t compared to the previous month: PS prices have increased by an average 20 €/t and PP by an average 23 €/t. A and C PET held their own at 1120–1180 €/t in May. Since March standard plastics prices have increased by small gradations. In the case of standard plastics, supply and demand are largely balanced. There is considerable demand for PP and PS. The May quotes match the increase in precursor prices. Price quotes are expected to remain relatively stable in June.
Table 1: EUWID quotes for standard plastics over the past four months, prices in €/t
2. The market for secondary plastics
In the primary markets, the May listings rose slightly compared to the previous month – they may be assessed as being stable, with a tendency towards rising prices. Secondary plastics follow a slightly different trend from the primary markets. The markets for secondary plastics therefore prove to be calm. The demand for standard plastics was stable to favourable in May, but it has stagnated in June. The markets for secondary plastics are restricted in supply with respect to input, i.e. bale goods. The plastics recyclers’ output, i.e. recyclates, is selling well – or, to put it differently: plastics recyclers do not have sufficient input of satisfactory quality.
A specific situation has arisen with respect to PP: dual systems are securing packaging PP to the detriment of the free plastics markets. There is very little packaging PP left in the free markets. Therefore, plastics recyclers are having problems utilising their PP production lines to capacity.
Exports to the Far East are at a stable level. To date, there are no large-scale impulses in demand from the part of the People’s Republic of China. In the presentation entitled “CIQAR – China Entry-Exit Inspection and Quarantine Association Reused and Recycling Branch”, given by Mr Yu PENG on the occasion of the 17th International Conference on Recycling of Plastics in Bad Neuenahr, the following figures for 2014 were used to describe the current plastics recycling situation in the People’s Republic of China: total amount of imports of used plastics approved – 12.3 million tons per year, which may be imported by 700 companies authorised to do so. The number of recycling companies authorised in the People’s Republic of China amounts to 920.
2.1 EUWID Price Watch
In May, too, the EUWID Price Watch almost held its own compared to the previous month. Only four price rises, namely by an average 5 €/t, were indicated. There is considerable demand for bale goods. Recyclates are in great demand in Germany and in the domestic markets. However, there are still no significant market impulses for standard plastics.
The PET market has also proved to be calm. Supply and demand are largely balanced. According to EUWID, PET beverage bottle prices remained stable in May, too. The following prices were thus listed by EUWID: PET transparent 250-290 €/t and PET coloured 60-95 €/t.
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 June 2014 - these quotes merely reflect an interim situation that does not become definitive until the following month.
Standard plastics
Since March the average standard plastics prices have fallen by small gradations. In May standard plastics quotes fell short of those for the previous month by 7 €/t. There were slight price changes in each of the quality grades, with price rises ranging from 20 €/t to 30 €/t and price falls from 20 €/t to 80 €/t. The month of May was characterised by improved demand compared to the previous month. In May PVC and all LDPE quality grades, including bale goods, regrind and regranulates, could be purchased at very favourable prices. LDPE regranulates reached its lowest level since February 2012 at 790 €/t. PET prices also bottomed out. According to plasticker the following price listings changed by more than +/- 40 €/t in May compared to April: LDPE regranulates – 80 €/t and PET regrind mixed colours – 50 €/t.
The first preview of the June quotes, which cannot be finally reported until the beginning of July, indicates a prospective average price of 601 €/t. However, the price rise of 15 €/t in standard plastics, indicated by the plasticker internet platform for standard plastics on 23 June 2014, must be viewed with reservation because it is subject to a markedly increased quote for PS regranulates. If PS are not taken into account, there are indications of a further price decline. In June, there has been restrained demand for standard plastics until now.
Table 2: Standard plastics prices according to 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 (may be amended by additional quotes)
Technical plastics
In May the quotes for technical plastics rose by an average 45 €/t compared to the previous month. With the exception of PC regranulates, the prices of all technical plastics increased. In May technical plastics were in considerable demand. The price rises in technical plastics ranged between 10 €/t and 180 €/t. According to plasticker the following prices changed by more than +/- 70 €/t in May: PBT regranulates +130 €/t, PA 6 regrind +120 €/t, PA 6 regranulates -100 €/t and PA 6.6 regrind +180 €/t.
The first preview of the June quotes, which cannot be finally reported until the beginning of July, shows an average price of 1313 €/t. Thus the prices quoted by the plasticker internet platform for technical plastics on 23 June 2014 fell by 44 €/t compared to May. Technical plastics can still be purchased at very favourable prices. The listings for PA 6.6 regrind and POM regranulates fell more markedly than those for other quality grades, namely by 100 €/t and 120 €/t respectively.
Table 3: Prices of technical plastics according to 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. Plasticker offers the quality grades regrind and regranulates in the form of both virgin materials and secondary materials.
