20 December 2006 – Standard thermoplastic prices in Europe in December have slipped once again, with the exception of PVC and PET.
Sellers fought hard to defend November price levels but strong buyer resistance forced them to make price concessions. Lower feedstock costs, softer seasonal demand and better availability for most polymer classes were the main price drivers.
L/LDPE was the weakest sector with prices sliding ˆ30/tonne in December. High-density grades, where availability is somewhat tighter, also saw falls of ˆ30/tonne. HDPE blow moulding grades were down ˆ30-40/tonne.
Polypropylene was down by a similar amount. Polystyrene prices slipped ˆ20/tonne, with PVC and PET bottle grade resin prices unchanged.
Next month, polymer price movements are likely to be closely aligned to feedstock costs.
With the Q1 ethylene and propylene contract prices expected to settle ˆ40-50/tonne lower, polymer suppliers will be attempting to minimise any price reductions to protect their profit margins. Much will depend on a recovery in demand and the impact of plant outages on the supply situation.
