Standard Thermoplastics Trend July 2012: Producers pass on only part of their cost reduction / Rising oil increases margin pressure / Some producers stop orders as inventories shrink / Prices likely to bottom out

摘要

In the first third of July, European buyers of standard thermoplastics felt as if they were on a roller coaster. With the massive falls in the price of the key feedstocks ethylene (down EUR 170/t), propylene (down EUR 170/t) and styrene (down EUR 115/t), it seemed that the course for the month was set. Polyolefin producers especially had suffered considerable margin losses in the two previous months and had therefore been hoping to hang on to some of the cost reduction. Nevertheless, they were usually forced to make triple-digit concessions. Then, suddenly, buyers abandoned their go-slow ordering stance and began a run on stocks. The flow of orders quickly developed into a torrent.