Hars weekrapport: Kunststof prijzen onder druk; Verdere erosie verwacht

Nov 22, 2016

Spotresintradingimprovedlastweek, althoughthemarketisstillverynervous. Theflowofmaterialwasheavy

nogmaals, andwhilecompletedvolumesrosesubstantially (fromdismallevels), offershavestillbeenaccumulating,

writesthePlasticsExchange(Chicago)initsMarketUpdate.Most,ifnotall,commoditygradepolyethylene(PE)

andpolypropylene (PP) resinsarereadilyavailable, andaverywiderangeofpricesarequoted. Upstream

energyandfeedstockpricesrecoveredsomewhat, butplasticsremainedunderpressure. Marketparticipants

anticipatefurthererosionahead, asoffersforshipmentstwoweeksoutarecheaperthanmaterialforimmediate

verzending. Incrementalexportsalesremainseasonallychallenged,compoundedbythestrongU.S.dollarand

negativeregionalmarketsentiment.

SpotPEtradingwassignificantlymoreactive, asasteadystreamofofferscontinuedtopeltthemarketand

pricesslidfurther. Mostgenericprimegradesdroppedanotherpennywithvariousone-offdealsdoneatsteeperkortingen.Resinhasbecomeplentiful, evenpreviouslyscarcegradeslikeLDPEfilmandLLDPEhaveemerged,

shrinkingtheirpremiums. Houstontradershavedroppedtheirbids, lookingtoliquidateunsoldlotsratherthan

takingonnewpositions en, asalways, seekingback-aan-backtransactions, reportsthePlasticsExchange.

Amidfallingspotlevels, someprocessorsseemfrustratedbythelackofclaritywithNovemberPEcontractsand

haveminimizedvolumecommitments. SeveralproducershaveloweredNovemberPEby$ 0,03/lb, butothers

haveyettoannouncethemagnitudeoftheirdecrease. Whilethepricereliefiswelcomedbybuyers, de$ 0,03/lb

dropisnotnecessarilydeemedalargeenoughbreak, andsomeareeying$ 0,05/lbtocompletelywipeawaythe

Septemberincrease.PerhapsitwilltakethroughDecembertoachievethenickelormaybeshaveevenmore.

PPtradingpickedupabitanddealswereflyingifthevolumeswerelarge.Genericprimelevelsgenerallyslid

anothercent, withlargerdiscountsneededtomoveoffgrade. Resellershavemaintainedtheirefforttoliquidate

uncommittedmaterial, acceptingreasonablebidsevenifitgeneratedaloss. NovemberPGPcontractssettled

earlierinthemonthdown$ 0,06/lb; thePlasticsExchangeexpectsanotherrangeofPPcontractpricemovement

basedonparticularindexmarkers, spotlevelsandmonomercomponents. SomePPbuyersappearedwillingto

payseveralcentsextraforlast-minutetruckloadshipmentsratherthanbuyingacheaperrailcar.AspricesCascadelager,theyfearbetterdealswillemergebeforethebulkresinevenarrives. Thatsaid,othershavefound

deeplydiscountedspotofferscompellingandworthyofmulti-carorders. Pricelevelsaregenerallyseenfromthe

Mid$ 0 .40tomid 0$ .50rangebasedonqualityandquantity; someisolatedroughermaterialhasbeenpriced

startingwitha3; homopolymerhasbeennoticeablyweakerthancopolymer.