Standard Thermoplastics March 2013: Producers find it hard to pass on costs / Cold weather, soft markets and reluctant buyers dash hopes for hikes / Cost reduction and rising demand jockey for position in April

摘要

The return of winter threw a spanner into the works for European producers of standard thermoplastics in March. With increases in the contract reference price for ethylene (up EUR 50/t), propylene (up EUR 55/t) and styrene (up EUR 27/t), producers announced price hikes across the board. In the case of PE, the target was triple-digit. Initially they enjoyed some success, but mostly the goals eluded their grasp. Margins on polyole-fins and EPS dipped again as producers netted gains of only EUR 10-30/t. For PS and PVC, the price rises just about managed to cover the higher production costs. As expected, the fundamental weakness of the European PET market remained unchanged in March. If anything, notations weakened further on the back of moderate feedstock declines. Despite drastic output cutbacks, overcapacity persisted. Even the imports present in the European market due to overcapacity in Asia found few takers. The continued cold weather depressed end-market orders for beverage bottles.