Standard Thermoplastics in August 2012: Polyolefin producers regain margins as costs spiral/ PVC and styrenics players restricted to passing on higher costs / Supply tight / Further price rises on the horizon

摘要

In August, European standard thermoplastics notations continued their uninterrupted roller coaster ride. Following the spring price peak, margins began to crumble in May and more severely in June. In July, polyolefin producers in particular managed to stem the bleeding, only to face the next steep challenge in August. The turnaround in feedstock prices that began in July helped producers convince their customers of the need to hike prices in August. Discreet hints of further rises in September also did their part to drive home the point. As bottlenecks began to crop up, buyers abandoned any efforts at resisting hikes as well as any thoughts of pre-buying. Against this background, producers' attempts to restore margins to a reasonable level met with considerable success, especially for polyolefins. Across the board, the increases were well above the cost rises of EUR 140/t for ethylene and EUR 120/t for propylene. For both PVC and styrenics, where the markets were better in balance, producers at most could pass on their higher costs.