Polymer prices in Europe to rise on feedstock cost increases

18-Dec-09

Polyethylene producers have witnessed better than expected sales and notations in the month of December as per European Plastics News. These figures have risen beyond the increase in feedstock costs. As compared to November, PE prices were €20-30/ton higher in December as compared with the €7/ton increase in C2 costs. Better than expected demand was accompanied by balancing of the over-supply situation seen in recent months. Other commodity resins, with the exception of PVC, approximately matched the recent increases in feedstock costs. Producers' profit margins, however, remain under pressure as notations have fallen more than feedstock costs in the previous three months. Polypropylene moved up in line with the €10/ton rise in C3 costs as per EPN. PVC prices are likely to see a weak price rollover as the conflict between buyers and sellers continues. Producers are widely predicted to call for large price increases to compensate for higher feedstock costs this month.