Market Report Plastics - November 2014

Information about the market for plastics is being presented by:
bvse - Bundesverband Sekundärrohstoffe und Entsorgung e.V.

1. The market for primary plastics

The German economic data for the fourth quarter of 2014 and the economic previews for the first quarter of 2015 are not very favourable. However, there has been strong demand for consumer goods in the fourth quarter. In addition, there is considerable demand for automobiles in Europe. The German newspaper Die Welt, see http://www.welt.de, reported on 18 November 2014 that 1.1 million cars had been newly registered, compared to 1.05 million in the previous year; these figures have been published by the ACEA – European Automobile Manufacturers’ Association in Brussels.

The FAKUMA 2014 excelled itself; the trade fair attained a new record high with 45,689 visitors from 117 countries and 1,772 exhibitors from 36 nations, see http://www.fakuma-messe.de. The reports on the FAKUMA form the basis of the following trend picture for the first half-year of 2015: the favourable economic development for plastics processing in 2014 will continue at a weaker, albeit stable level.

The markedly falling oil price is likely to push plastics precursor prices further down, which will, overall, lead to plastics prices falling in the next two months. Nevertheless, it is surprising that the slump in crude oil prices by a considerable 33% (calculated based on the difference between the annual peak level of 113 US-$/barrel and the lowest annual level of 76 US-$/barrel, see http://www.tecson.de) has only had a very moderate impact on plastics prices so far.

1.1 Standard plastics: Price stabilisation in standard plastics. In October standards plastics prices remained almost unchanged, see Table 1. Packaging PET, which attained an average 1230 €/t, fell by 20 €/t compared to the previous month. Standard plastics prices are predicted to fall in November. This is explained by the price declines in the crude oil chain, falling demand on the processors’ part and excess supply on the plastics markets.

Table 1: EUWID quotes for standard plastics over the past four months; prices in €/t.

1.2 Technical plastics: The average price of technical plastics, which are listed by EUWID every two months, see Table 2, has fallen only very slightly. This is due to ABS only, whose average price has fallen by 42 €/t. The listings for all other technical plastics have remained unchanged. The technical plastics markets have proved to be stable and calm. There are no special impulses for demand. Technical plastics are in good supply. Plastics processors expect prices to go down in the next few months, in particular as a result of the falling precursor listings.

Table 2: EUWID quotes technical plastics, published every two months, over the past six months; prices in €/t.

2. The market for secondary plastics

In October standard and technical plastics prices remained stable in the primary markets. However, the prices are predicted to go down in the next two months. Along with falling precursor prices, the imminent winter break is likely to influence the markets accordingly.

According to EUWID and plasticker, plastics prices in the secondary markets have held their own. In October, too, there was strong demand for plastics in the secondary market. There is still a shortage of processing goods of sufficient quality among plastics recyclers. Hollow bodies from HDPE and PP are in very short supply. In this area there is an increasing number of subcontracting processors. The economic developments in the building sector are keeping PS and PVC at a stable level. PS, which provides numerous other processing opportunities, is in good demand.

There is very considerable export demand for film from the Far East. Recyclate sales are satisfactory. Larger amounts of processing goods continue to be withdrawn from the national markets through exports to the Far East and incineration. Dual Systems provide the opportunity to shift even larger quantities of waste plastics to the Far East.

2.1 EUWID Price Watch

The EUWID Price Watch for waste plastics showed price stabilisation in October. The prices of post-industrial PE, PP, PVC and PS held their own. Only in the post-user PE area were there slight price adjustments, namely by an average 5 €/t to 15 €/t, with respect to a few film grades. Post-user PE is now quoted at: LDPE shrink film natural (E 40) 520-580 €/t, film transparent natural < 70 mm 440-480 €/t, film transparent mixed colours < 70 mm 70-210 €/t and mixed film (90/10) 285-315 €/t. Film sales to the Far East are booming.

The PET market was troubled in October. According to expert reports, the beverage bottle supply was in decline in the domestic market. Over and beyond this, falling precursor prices were putting pressure on the secondary market. In addition, there were reports on sufficient PET flake stocks. The EUWID listings for PET beverage bottles held their own at: 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 November 2014 - these quotes thus merely reflect an interim situation that does not become definitive until the following month. Plasticker offers the quality grades regrind and regranulates both as virgin materials and as secondary goods. The term “bale goods“ refers to waste plastics only.

Standard plastics

In October the average standard plastics price, see Table 3, which amounted to 598 €/t, exceeded that of the previous month by 14 €/t. There were considerable price changes in the individual quality grades. Thus, price rises ranged from 10 €/t to 100 €/t and price falls from 10 €/t to 60 €/t. There was restrained demand for standard plastics in October. HDPE regrind continued to show a consistent upward trend. The listings for PP bale goods and PP regrind have risen considerably over the past three months, while PP regranulates have shown a weakening trend over the past year. PS regrind has continued to show a rising tendency over the past twelve months. The prices of regrind from PVC_U have fallen over the past year. The same is true for PET regrind, which continues to show a trend towards decline, too. According to plasticker, the following prices changed by more than +/-40 €/t compared to the previous month in October: HDPE regrind + 50 €/t, HDPE regranulates – 60 €/t, LDPE bale goods – 50 €/t, PP bale goods +90 €/t, PP regrind +60 €/t, PS regrind + 50 €/t, PS regranulates + 100 €/t, PVC_P regrind -60 €/t and PET bale goods – 50 €/t.

The first preview of the November listings, which cannot be definitively reported until the beginning of December, shows the prospective average price to be 618 €/t. Thus, the plasticker internet platform indicated price stabilisation on 17 November 2014. To date, there has been sufficient to satisfactory demand for standard plastics in November.

Table 3: 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 October the average price of technical plasticks fell short of that for the previous month by 46 €/t, see Table 4. Technical plastics stabilised at a low price level. The prices of the individual quality grades changed as follows: there were only two price rises of 20 €/t each (PC regranulates and PBT regranulates), whereas price falls ranged from 20 €/t to 180 €/t. PC regrind, PA 6 regrind and POM regrind have shown a tendency towards decline over the past year. In October there was restrained demand for technical plastics. According to plasticker the following prices changed by more than +/- 70 €/t: PC regrind -120 €/t, PA 6.6 regrind – 80€/t and PA 6.6 regranulates – 180 €/t.

The first preview of the November listings, which cannot be definitively reported until the beginning of December, shows the average price to be 1348 €/t. In November, PC, PBT, PA 6.6 and POM regranulate prices rose markedly. Thus, technical plastics stabilised. The plasticker internet platform indicated satisfactory demand for technical plastics until 17 November 2014.

Table 4: Quotes for technical plastics in plasticker; prices in €/t.

5: equivalent to the grade "regranulates, black". 6 preview (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.