Market Report Plastics - August 2014
Information about the market for plastics is being presented by:
bvse - Bundesverband Sekundärrohstoffe und Entsorgung e.V.
1. The market for primary plastics
Assessments on the prospects for future economic development are different when viewed within Germany or across Europe, see www.cesifo-group.de. While the prospects represented by the ifo Business Climate Index for Germany's national trade and industry are relatively bleak, the findings of Europe's GfK Consumption Climate Index for the second quarter of 2014 are favourable.
The ifo Business Climate Index for Germany's trade and industry fell from 109.7 points in June to 108.0 points in July. This is the third drop in succession. The current business situation is assessed as being less favourable than in June. The preview of future economic development is, once again, less optimistic, too.
Despite all discussions and crises the upswing seems to be consolidating in each EU country and thus, in the European Union as a whole. The Consumption Climate Index for the EU28 rose in the second quarter, reaching 9.1 point at present. This is the highest value since April 2008.
Standard plastics: Standard plastics prices rose considerably in July. The average prices increased by 35 €/t. Only the PP price held its own. The quotes for PE plastics rose by 50 €/t and those for PS by even 60 €/t. The price rise in PVC, which amounts to 20 €/t, is comparatively moderate. The listings for packaging PET increased by 35 €/t. The rises in the July listings are explained by the increased precursor prices. In addition, there are reports on plant failures leading to supply shortage. Plastics processors are reacting to the price rises with restraint. Above and beyond this, demand during the summer break is lower than in the previous months. However, oil prices have been falling significantly in August, which means that precursor prices, too, are likely to be lower in the near future. Hence, it will be interesting to observe whether the price increases will hold their own in the markets.
Table 1: EUWID quotes for standard plastics over the past four months; prices in €/t
2. The market for secondary plastics
In July the quotes for standard plastics in the primary markets rose significantly. Secondary plastics prices also rose in plasticker, while EUWID indicates price stability. There is considerable demand for PP and PS in particular. The demand for secondary plastics is comparatively high during the holiday months. Used film and hollow bodies are in great demand in the export trade with the Far East.
2.1 EUWID Price Watch
The waters are untroubled. In July the prices of all plastics, with the exception of HDPE hollow bodies mixed colours, held their own. As a result of considerable demand, prices rose moderately by an average 15 €/t. For instance, HDPE hollow bodies mixed colours were quoted at 180 - 320 €/t.
The PET market is also calm. The price rises in virgin materials are not yet mirrored by the developments in the quotes for beverage bottles. Due to the summer, the supply of beverage bottles has increased. Recyclates are in great demand. According to EUWID, beverage bottle PET prices continued to hold their own in July. The following prices are still quoted 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 indicates the final monthly prices. The preliminary quotes previously accumulated are only represented during the reporting month in question, in this case for August 2014 - these quotes thus merely reflect an interim situation that does not become definitive until the following month.
Standard plastics
In July standard plastics prices rose by an average 13 €/t compared to the previous month. This is the second price increase in succession. The price changes in individual quality grades differed markedly, with price rises ranging from 10 €/t to 80 €/t and price falls from 10 €/t to 90 €/t. Even though July was a holiday month, there was relatively strong demand for standard plastics. The prices of PS regranulates and PET regrind mixed colours continued to fall. According to plasticker the following price quotes changed by more than +/- 40 €/t in July compared to the previous month: LDPE regrind +80 €/t, PP bale goods +70 €/t, PS regrind +60 €/t and PS regranulates -90 €/t.
The first preview of the August quotes, which cannot be finally reported until the beginning of September, indicates a prospective average prices of 604 €/t. Hence, the average price fall listed by the plasticker internet platform on 12 August 2014 was 10 €/t. There has been restrained demand for standard plastics in the holiday month of August. To date, HDPE regranulate and LDPE regrind prices have changed more considerably, namely by +80 €/t and by - 50 €/t.
Table 2: Quotes for standard plastics according to 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
In July the listings for technical plastics fell short of those for the previous month by an average 19 €/t. Overall, technical plastics prices can be assessed as being stable. The prices of the individual quality grades changed only moderately, with price rises ranging from 10 €/t to 50 €/t and price falls from 10 €/t to 90 €/t. There was relatively stong demand for technical plastics in the holiday month of July. According to plasticker only PA 6 regrind, reaching -90 €/t, changed by more than +/- 70 €/t. Technical plastics prices were very favourable in July.
The first preview of the August quotes, which cannot be finally reported until the beginning of September, indicates a prospective average price of 1326 €/t. To date, there has been considerable demand for technical plastics in the holiday month of August. According to the plasticker internet platform, technical plastics prices were slightly rising on 12 August 2014.
Table 3: Quotes for standard 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.
