25 April 2007 – Good demand, tightening supply and higher feedstock contracts drove standard thermoplastics prices even higher in April.
Sellers were able to pass on virtually all of the increase in Q2 feedstock costs during the April price round. Polyolefin and PET prices were ˆ30/tonne higher with polystyrene up ˆ35/tonne to near record levels. PVC was the exception, registering only a strong rollover.
Order intake was good with unexpectedly strong sales after Easter. Converter attempts to secure additional material was thwarted by tightening availability. Some producers affected by plant shutdowns for maintenance and ‘force majeures’ had to close their order books early last month.
Stock levels remain on the low side across all polymer sectors. Tight supply is likely to remain a feature for at least the next two months with several cracker and polymer units scheduled for temporary maintenance shutdowns.
Having already achieved their price target to at least cover monomer cost increases in April, producers will be pressing hard for margin improvement this month.
