Market Report Plastics - October 2015
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 publishes a monthly economic monitoring report on the plastics industry in Europe. In the period from January to August 2015, European primary plastics production fell by 3.2% when compared with the corresponding period of last year. In the same period, however, the amount of plastics processed into products rose by 2.1%. In the period from January to August 2015, the prices for the manufacture of primary plastics fell by 2.0%, whereas the price of plastic products remained stable in the same period.
Standard plastics: The average price of standard plastics fell by 110 €/t to 1345 €/t, cf. Table 1. Or to put it another way: within two months, the plastics price has fallen by 180 €/t. The reasons cited for the low virgin material prices include restrained demand among plastics processors due to a wait-and-see strategy and falling demand among downstream customers. In other words, the force majeure that lasted from February to June 2015 has come to an end. The low oil price is another factor in the falling prices because it means cheaper precursor prices and favourable polymer prices. Over the average of the last 100 days, the mineral oil price on 19 October 2015 was only 49.10 US $.
The price reductions are particularly significant for polyolefins. Experts rate the supply of standard plastics as satisfactory. The price of packaging PET is also falling considerably. At an average price of 1115 €/t, it has fallen by 55 €/t compared to the previous month, when it was 1170 €/t.
For a detailed discussion, including details of price indices for virgin materials, waste plastics and precursors, please refer to EUWID Recycling und Entsorgung (EUWID Recycling and Waste Management) or EUWID Kunststoff (EUWID Plastics), cf. www.euwid.de and KI - Kunststoffinformation (KI Plastics Information), cf. www.kiweb.de.
Table 1: Standard plastics prices according to EUWID over the past five months, listed in €/t.
2. The market for secondary plastics
This month, both price indices, i.e. plasticker and EUWID, indicate falling prices. In both price indices, the average price falls are more or less the same at around 15 €/t.
Waste plastics: Demand for used plastics has recovered in September and October. The price of processing input has fallen for plastics recyclers in September. Waste plastic prices dropped again in October. Since mid-September plastics have been sold for export to the Far East again; demand for film is especially high. The People's Republic of China continues to buy only high-quality goods. Complaints are always made about waste plastics that do not adhere to the agreed standards.
Recyclates: Demand for recyclates is still high. Recyclate prices are coming under pressure as a result of the falling prices for virgin material. So far in the fourth quarter, no higher demand due to the forthcoming Christmas trade can be discerned. Demand for technical plastics is sufficient to satisfactory after the summer break. The prices of technical plastic recyclates are falling in small monthly increments.
2.1 EUWID Price Watch
The EUWID Price Watch indicates mostly slight price falls for selected qualities. All types of plastic are affected by this. The price falls are in the range of 10 €/t to 30 €/t. Plastics recyclers are expecting prices to fall further for their processing input.
However, price rises are reported for post-user PE for four film grades, namely: film transparent natural <70 m 380-430 €/t, mixed film (80:20) 200-260 €/t, mixed film (90:10) 250-290 €/t, mixed film (98:2) is also quoted 30 €/t higher. The prices of these grades rose by an average 24 €/t. Unlike the films, HDPE regrind from crates, colour-separated was priced at 680-820 €/t in September, and the upper price range was 20 €/t lower than in the previous month.
There were two price drops in post-industrial PE, namely: HDPE mixed colours 570-670 €/t and LDPE mixed colours 480-650 €/t. There is still strong demand for post-industrial PP. EUWID reports price reductions of an average 18 €/t for three listings, film mixed colours (K 59) 120-240 €/t, homopolymer mixed colours 470-650 €/t and copolymer mixed colours 470-650 €/t.
The price falls in the PVC primary market have had a moderate impact on waste PVC. Whereas post-industrial PVC was listed at 13 €/t lower, no changes can be seen in the quotes for PVC window frame regrind. The changed prices for post-industrial PVC are as follows: PVC_P transparent 340-440 €/t, PVC_U transparent 450-550 €/t, PVC_U mixed colours 420-520 €/t and tube grade mixed colours 420-520 €/t.
Post-industrial PS has also been affected by slight price falls of an average 6 €/t. Further price reductions are likely in the next month, depending on the virgin materials. The new prices are as follows: standard mixed colours 550-670 €/t, standard crystal clear 650-870 €/t, standard white 670-880 €/t and high-impact black 640-730 €/t.
The PET recyclers' warehouses are still replete with stocks. The considerable supply of used and disposable PET bottles from within Germany and the European single market has led to further price reductions. PET recyclers have stored enough processing input for up to two months. The EUWID listings for PET beverage bottles have fallen by 23 €/t for PET transparent and by 15 €/t for PET coloured.
2.2 plasticker price index
The plasticker internet platform published quotes on an hourly basis. The present market report indicates the final monthly prices. It is only possible to represent the preliminary prices for October 2015. These listings thus merely reflect an interim situation that does not become definitive until November 2015. 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 September, standard plastics prices in plasticker averaged 604 €/t. This month, too, prices are stable in comparison to the previous months. However, there are marked price changes for the individual grades. The price rises range from 10 €/t to 60 €/t and the price falls from 10 €/t to 200 €/t. Demand for standard plastics in September was higher than in the previous month. After the record rates of the last four months, the prices for LDPE regranulates fell by 200 €/t. PP regrind was listed at 70 €/t lower in September. By contrast, HDPE regranulates were 60 €/t and PS regranulates 50 €/t higher than in the previous month.
The first preview of the October listings, which cannot be definitively reported until the beginning of November, shows the prospective average price to be 589 €/t. Thus, the plasticker internet platform indicates an average price that was 15 €/t lower on 15 October 2015. Demand for standard plastics has been strong in October so far.
Table 2: Standard plastics price according to plasticker; listed 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 (likely to be amended by additional quotes)
Technical plastics
In September the average prices of technical plastics were quoted at 1294 €/t in plasticker; i.e. they had fallen 16 €/t compared to the previous month. This means that technical plastics are more or less the same as the previous month. The price changes for the individual grades were minor: the price rises ranged from 10 €/t to 50 €/t and the price reductions from 10 €/t to 140 €/t. Demand for technical plastics continued to be adequate in September. PC regranulates and PBT regranulates fell by 140 €/t and 50 €/t in September, reversing the price rises of the previous month, which amounted to 210 €/t and 90 €/t respectively.
The first preview of the October listings, which cannot be definitively reported until the beginning of November, shows the average price to have fallen only slightly from 1294 €/t in September to 1285 €/t. By 15 October 2015, the plasticker internet platform showed adequate demand for technical plastics.
Table 3: Technical plastics price according to plasticker; listed in €/t.
5: equivalent to the grade "regranulates, black". 6 forecast (likely to 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.
