Price know-how January 22

Styrenic and Engineering polymers face significant feedstock inflation and polyolefin buyers adopt a cautious approach to the market as signals become more mixed.

Price know-how 2021 Review 2022 Outlook

Price Know-how Review & Outlook. 2021 turned out to be a challenging year, in which prices and availability were significant issues. Not only was price volatility a cause for concern, but for many materials prices were inflated to record highs. A crisis in the global container shipping industry not only illustrated the dependence of the polymer industry upon the free movement of goods but also the need to for this to take place at an economic cost so that goods can move freely to the point of demand. Natural phenomena including extreme weather events in the USA and the global Coronavirus pandemic brought further supply disruption. Finally, the world faced a shortage of IC Chips which significantly curtailed automotive production as motor manufacturers struggled to secure supply of these essential components.

Price know-how December

Conflicting factors cause confusion for polymer prices. The polymer markets entered a state of limbo, as a drop in crude oil prices was countered by a fall in the value of the GBP. Not only did the new Omicron variant of the Coronavirus bring with it a very real threat to the fortune of the global economy, but markets took the view that the UK economy was going to suffer to a greater extent, at least in the short-term, and hence the increasing weakness of the GBP against the Euro and the USD.

Price know-how November

The margin squeeze continues as polymer producers face resistance passing through feedstock and energy cost inflation. Polymer producers are experiencing cost pressure across all feedstocks, with the SM (Styrene Monomer) prices surging forward by almost £200 per tonne.

Price know-how October

Upward pressure on polymer prices resulting from increasing feedstock and energy costs. Once again, the Covid-19 pandemic has taught us to expect the unexpected and this time we are bearing witness to a significant increase in crude oil price as the world’s concerns now extends to the issue of energy availability.

Price know-how September

Falling feedstock prices coupled with improved availability across many polymer types start to place prices under increasing pressure.

Price know-how August

The situation on pricing continues to be complicated. The market for polymers continues to be complex as multiple factors act to greater, or lesser extent on pricing.

Price know-how July 21

The situation on pricing continues to be complicated. The market for polymers continues to be complex as multiple factors act to greater, or lesser extent on pricing.

Capilene SW 70 LE

New developmental Capilene SW 70 LE polypropylene impact copolymer resin provides a unique combination of very high flow, good stiffness – impact balance and low emissions that is favourable for use in automotive interior trims compounds (according to VDA 278).

Capilene® CW 85 AV

A new polypropylene grade from Carmel Olefins offers outstanding processability, combined with mechanical and optical properties that are particularly suited to TWIM food packaging and consumer applications.

Santoprene thermoplastic vulcanizates (TPVs)

Plastribution are proud distributors of ExxonMobil’s Santoprene range of TPVs.

Santoprene thermoplastic vulcanizates (TPVs) are high-performance elastomers, which offer manufacturing flexibility, ease of processing and durability. By offering superior and consistent performance across automotive, industrial and demanding consumer applications, Santoprene TPV offers the potential for reduced system costs, reduced weight, and recyclability compared to materials such as thermoset rubber.

Capilene CP71AV Polypropylene From Carmel Olefins

Read about the new Capilene CP71AV polypropylene resin from Carmel Olefins. Providing a unique combination of mechanical and optical properties, together with outstanding processability, it is designed specifically for the thin wall packaging market and consumer applications.

Light guides made from PLEXIGLAS® – The original by Röhm

Light guides made from Plexiglas® lend a high-quality appearance to the new premium ATMs from Diebold Nixdorf. Whether in a pedestrian zone or in a shopping mall, advertisement boards are lit up everywhere and compete for the attention of passers-by. Many companies therefore place value on being recognized by their brand colors and, ideally, standing out from the crowd. The same goes for banks. However, while facades and the buildings themselves are generally found in the company colors, most ATMs still look very similar. The next generation of ATMs from Diebold Nixdorf – the DN SeriesTM – will now change this.

Santoprene™ TPV for construction glazing seals

Santoprene TPV grades from ExxonMobil come with all-weather resistance and long-lasting sealing performance for windows, door seals and gaskets, both in residential as in commercial buildings. With its unique combination of rubber performance and thermoplastic processing, Santoprene TPV is the construction and glazing seal gasket material of choice for long-term reliability in functionality.

Ipethene 4140

Ipethene 4140 – a new very low melt flow LDPE from Carmel with superb melt strength. Carmel Olefins has extended their Ipethene range of autoclave LDPE for blown film extrusion with the introduction of Ipethene 4140 which has a very low melt flow of 0.13 g/10min (2.16kg, 190°C). This provides very high melt strength and […]

Women in Plastics

Women in Plastics

‘Women in Plastics’ provide a platform for females in the plastics industry that are doing great work in every type of capacity. Recently, Plastribution Commercial Director Katherine White took part in an interview for their publication which they’ve kindly allowed us to share.

Brexit implications that may affect your business

Whilst the details of the Brexit divorce settlement and future trading relations are likely to become clearer over the coming weeks, it is important to consider a range of scenarios including ‘no deal’. At Plastribution we have spent some time looking at the implications to our own business and the likely effects for our customers in the case of a HARD BREXIT.

Exchange Rate

Brexit

The comments made on Friday 3rd August by Mark Carney, the Governor of the Bank of England, that the risk of a no deal Brexit was ‘uncomfortably high’ had a significant impact on the currency markets. This was further compounded by an article written by Liam Fox, the International Trade Secretary which set the likelihood of a hard Brexit at 60%.

An overview on Plastribution’s ‘Understanding the Polymer Supply Chain’ Conference 5-6 June 2018

Polymer Supply Chain

Plastribution’s recent Understanding the Polymer Supply Chain Conference took place on 5-6 June 2018. This was the 3rd ‘sharing of experience & expertise’ forum that has been held since 2015 and with 18 delegates attending, the largest gathering to-date. For the first time, the event was held in the idyllic surroundings of Coombe Abbey Hotel in the Warwickshire countryside; an ideal choice that provided splendid isolation (along with limited mobile phone reception – good for some) to enable full immersion into the complexities of the polymer supply chain.

PA66 – The Pressure Grows

PA66 market ‘overheating’ many users and specifiers may well be forced to ‘down spec’ applications wherever possible, with the major winners potentially being for example nylon 6 and/or higher performance PP grades. Whatever happens it continues to be a very interesting time for nylon 66.

A polymer sourcing insight

Last week I attended the Polymer Sourcing conference in Barcelona where many of the presentations focused on the capacity expansions in the US based on ethane feedstock from shale gas.

Should recent oil price hikes worry polymer users?

Oil prices have surged in recent weeks as the rhetoric from US President Donald Trump regarding Iran has intensified and the threat of sanctions increased. Iran is one of the largest global oil producing nation and, should sanctions be imposed on 12 May, global supplies would tighten dramatically.

Nylon 66 – market update

For polyamide 66 processors across Europe, the situation has now become critical. Extremely tight supply for base polymer and compounds will intensify further now that both Invista & Solvay have declared force majeure for the total European production capacity of Adiponitrile (ADN).

Price know-how – Outlook & Review 2017/18

Price Know How

In addition to our monthly Price know-how publication, which is now uploaded to our online library, the Hub (www.plastribution.co.uk/know-how-hub), we also provide an assessment of what has happened over the past year and what may happen in the year ahead, particularly in terms of trends and the outlook for UK polymer prices. This assessment is called ‘Outlook & Review’ – a report that is published at the beginning of each year.

Price know-how October 2017

Price Know How

The major driver of feedstock costs in September was mainly related to the aftermath of storms affecting the US Gulf Coast, and in particular the impact of storm ‘Harvey’ in the Texas region.

Interplas 2017 & confessions of an exhibition sceptic

I ate humble pie for my tea last night and I have to admit I found it very tasty. I have been very outspoken internally at Plastribution about my feelings about trade shows which has led to some healthy discussions when reviewing our marketing plan.

Price know-how September 2017

Price Know How

Factors including exchange rates, feedstock price increases, strong demand, poor availability and even storms in the US are pushing prices upward.

Let Plastribution make it work for you

Plastribution

As highlighted in out previous blog (www.plastribution.co.uk/interesting-times-sterling), with the polymer market fluctuating in light of several key suppliers closing their orders books early in August, coupled with the weakening of Sterling against the Euro, the squeeze on UK processors is proving highly uncomfortable.

Interesting times for Sterling

As has already been evident for those of us who like to spend our summer holidays in Europe, we have seen further erosion in the price of sterling over the last few months.

Price know-how July

Price Know How

Will standard polymer prices continue to soften, or is there a risk of price increases later in the summer?

Mitsubishi Engineering Plastics’ Iupital® Acetal distribution

Iupital®

Plastribution rose to the challenge and became one of the largest suppliers of acetal in the UK. The initiative was based on the partnership between Plastribution and Mitsubishi Engineering-Plastics (MEP) and the quality and technical ability of MEP’s range of acetal known as Iupital ® – a copolymer-type acetal resin.

Price know-how June

Price Know How

Whilst the results of the UK General Election have impacted on exchange rates, relaxation in some polymer prices will bring relief to many plastics processors.

Price know-how May

Price Know How

Styrene monomer prices have plummeted and C2 and C3 prices have rolled over from April into May. In the case of Ethylene, this comes after a rollover in price from March to April. For styrene monomer, the change appears to be a correction following the dramatic events which started in December last year and acted as the driver to propel polystyrene, ABS and other styrenic-based polymers to historically high levels in record order.

Price know-how April

Price Know How

According to the trade body Petrochemicals Europe, an amazing 95% of manufactured goods are dependent upon the use of petrochemicals, of which plastics and polymers are a significant part. Whilst many are neither aware nor perhaps willing to accept such reliance, it appears the producers of these materials are, for the time-being at least, able to optimise the economics of this reliance.

Price know-how March

Price Know How

Tight Supply of Both Feedstocks and Polymers Continues to Fuel Price Inflation.

Price know-how February 2017

Price Know How

Is it likely that increasing benzene prices, that are already impacting styrenic polymer pricing, will stimulate rapid inflation for engineering polymers?

Reprocessed plastic – not so fantastic?

In the course of the past week two consumer ‘durable’ products have failed me. On both occasions a plastic component has failed prematurely. Whilst in each case the design of the component could have been improved, the more significant cause of the failure was the quality of the plastic used; which in both cases appears to be reprocessed.

Price know-how January 2017

Price Know How

A new year heralds higher oil prices and fresh calls for price increases, which are likely to be influenced by a recent fall in the value of the GBP following a strong rally at the end of 2016.

2016 – a year of BIG surprises!

Whilst every year contains a wide array of noteworthy events, typically the ramifications of these events are short-lived and the understanding of any consequences quickly comprehended.

Price know-how December

Price Know How

A confusing picture with oil prices increasing, GBP strengthening, C2 and C3 prices falling, and Styrene Monomer prices increasing significantly.

Carpe Discipulus – seize the student

Many of us are familiar with the term ‘Carpe Diem’, which in its literal translation means ‘seize the day’ and more broadly a mantra to embrace the opportunities that life presents us with.

Always there, always listening

Modern Communication

This strap line ‘always there, always listening’, comes from Plastribution’s brand movie, created almost 5 years ago. Many people, including on occasions my colleagues, would perhaps question the validity of such a bold statement and refer to the fact that our offices are not open 24 hours a day, 7 days a week all year round; however, in the era of modern communication, including text email and mobile phones Plastribution is pretty much ‘always on standby’.

Why is the EU Plastics Industry concerned about BREXIT?

Naturally for the majority of UK citizens our perspective on BREXIT is about how the decision to leave the EU will impact us. It was not until I was preparing a presentation for a conference held during K 2016 that I became aware of the potential impact of the UK leaving the EU upon the remaining members of the EU and most specifically the potential implications for the plastics sector.

Price know-how November

Price Know How

Pressure continues to build on polymer pricing as feedstock prices firm and Sterling continues to weaken; but for now there is still the uncertainty factor to contend with.

Price know-how October 2016

Price Know How

What are the implications for UK plastic processors as the GBP continues to weaken with ‘BREXIT SHOCK #2,’ at the same time as oil firms and some feedstocks increase in price?

Plastics Industry Awards – Apprentice of the Year success!

Katherine White, Plastribution’s Commercial Director and Lucy’s line-manager added: “Lucy has worked extremely hard at both with her studies and within Plastribution. This recognition is very well deserved and we are very proud of what she has achieved.”

Walls have ears

The UK has long been recognised for its ability to originate and develop new ideas. It is also true, often due to commercial necessity, that many of those ideas go forward to be produced in lower cost economies around the world, where they are frequently replicated and produced for sale without consent and at a fraction of the cost of their true value.

MOL Group

Headquartered in Budapest – Hungary, MOL Group is the largest plastic raw material producer in central Europe and holds a leading position in this region.

Life continues beyond the BREXIT blues

It is now two months after the shock result of UK’s referendum on EU membership. Whilst in the lead up to the 23rd June vote there was a discernible atmosphere of trepidation in terms of ‘what if we actually BREXIT’ and a consequential impact on demand this effect was almost insignificant as the reality dawned on the 24th and thereafter all minds focused on the hitherto unimaginable BREXIT choice.

Flame Retardant Additives for Film

The Kafrit Group are a global leader in the production of high quality flame retardant masterbatches and have been partnered with Plastribution for many years. They have been suppliers to the polymer industry for over 40 years and have capacity for 80,000 metric tonnes per annum.

Price know-how August 2016

Price Know How

Whether BREXIT will be regarded as the reason or simply the trigger for an economic slow-down, or if indeed other factors are of influence, is unlikely to be known for some time.

A purge on costs

Since October 2011 Plastribution has been able to offer its customers purging agents from Aquapurge. We currently hold stock of their Barrel Blitz Universal (BBU) purging compound within our warehouse network; other Aquapurge products are available on request and with the relevant technical support.

Price know-how June 2016

Price Know How

French Strikes, UK EU Membership Referendum, Summer Shutdowns and a Less Robust Approach to Passing on Feedstock Costs, All Contribute to Market Uncertainty.

Price know-how May 2016

Price Know How

Whilst the moderate recovery in Crude Oil price has so far provided support for the requests of polyolefin and polystyrene producers to increase prices and in many cases ‘recover eroded margins’, there is now increasing evidence that more normal fundamentals are starting to apply to at least PP and PE pricing.

Social Media and the SME

A few months ago I was talking to the Chair of Leeds University Business School Advisory Board and we got on to the topic of #social media and how our business was exploiting this marketing channel. She went on to ask @polymerman to write a short blog on our experience of exploiting this important new channel of communication.

Value = Price + Service + Reliability

Having previously written a blog entitled ‘Choosing what we outsource’, it is implicit that in determining which companies provide those services that performance is an important criteria for selection.

The lonely road to success

Both as a business and personally, we tend to spend little time looking at what others in our industry do or even how distributors in other sectors operate. The activity of benchmarking not only pre-supposes that, a) competitors may be doing things better than you, but also, b) what they do will suit our business.

Dave Machin Memorial Walk

With the blessing of his family, we have organised a memorial walk to take place on 22 May in memory of our friend and colleague Dave Machin, who sadly passed away on 30 May last year.

Price know-how April

Recovering Oil Prices Drive up Feedstocks with the Inevitable Push for Polymer Price Increases. Reinforced by Further Weakness of the GBP.

Price know-how March 2016

Price Know How

Whilst Extraordinary Polyolefin Margins Start to Decline, BREXIT uncertainty Weakens the GBP and Brings Inflationary Pressures Across the Board.

More plastic than fish in the sea by 2050

According to a report by the Ellen MacArthur Foundation (launched at the World Economic Forum in January), there will be more waste plastic in the sea than fish by 2050. Like most of us who read this headline, I was aghast.

Why is Supplier Relationship Management important?

When I started working in a commercial role in the Plastics Industry in the late 1980’s the relationship between customers and suppliers was often adversarial, with the general view that customers could browbeat suppliers into better commercial terms with a major emphasis on price and credit terms.

February Price know how

Price Know How

Weakness of the GBP Against the Euro Negates the Expected Price Reduction, and Are There Any Implications of a Bounce in Crude Oil Prices.

Choosing what we outsource

Prior to the 1980’s most companies did as much as they could for themselves and typically this included activities like transport and warehousing, on the basis that including these processes ensured control, retained profit and gave the best service. In fact Plastribution for a period of time until 1991 had its very own warehouse and even a delivery truck.

Sound insight from the UK’s leading polymer distributor

Alongside our monthly Price Know-how publication, at the beginning of every year we provide an assessment of what has happened over the past year and what may happen in the year ahead, particularly in terms of the outlook for polymer prices. We publish this insight here on our website, as well as via BP&R and in-part through PRW, thereby taking advantage of widespread industry circulation opportunities.

It’s PP – but not as we know it

Carmel Olefins released their ‘C’ grades about 2 year ago. They have successfully managed to combine the optical clarity of RCoPP together with the impact properties of PPCP at standard room and chill room temperatures. There are a number of grades available from stock and ready for you to sample. Call us on 01530 560560 to find out more.

Availability and Currency Continue to Influence Prices

Whilst the downward spiral of Crude Oil prices continues, and in spite of mainly less substantial feedstock cost reductions, prices for polyolefins and polystyrene continue to be robust. In the case of PE, the near 5% reduction in the value of the GBP vs Euro since the beginning of December entirely offsets the reduction in feedstock, and in the case of PP, significantly reduces the potential benefit of the more substantial €50 per tonne fall in January’s contract C3 price.

A crushing defeat…

Crush ribs, an inventive way to overcome design constraints or a cost cutting step too far?

Nice to meet you, I’m Joe

I have now been part of the technical team for about a month and feel I have settled well into the role here at Plastribution. Not that it has been difficult to settle in as the whole company has been very welcoming and the inductions have been quite thorough.

Mission, Vision, Values: Do businesses really need them?

A survey recently published in HR Magazine has revealed that for UK companies that have actually gone to the effort of defining their vision, mission and values, that on average only 42% of their employees are aware of their existence

rPET a clear alternative

As part of Plastribution’s commitment to sustainable and technical materials, we are working with Eco Plastics and can now offer the UK’s only food grade recycled PET (rPET) to plastics processors across the UK and Ireland.

To purge or not to purge…

It is a long time since I completed a colour change in a busy mould shop, but I can remember spending large amounts of time, and a lot of polypropylene, becoming increasing frustrated by the tiniest amount of red compound that just would not shift.

Customer service – make room, personality coming through!

Had the ominous task of phoning two call centres earlier this week. One a bank, the other a famous motoring organisation beginning and ending in ‘A’. We often dread these kind of tasks and, if like me, you will have to fight the urge to procrastinate. Imagine my surprise when the whole experience was really positive and whilst I would not go as far to say pleasurable, I left the phone feeling good about both organisations.

DuClear CE 85 B PPRCP

DuClear CE 85 E is a new and revolutionary grade of speciality clarified polypropylene random copolymer (PPRCP).

Which Market Fundamentals Are Now Driving Polymer Prices?

Following the market turnaround in February this year, the subsequent issues relating to polymer production in Western Europe and the weak Euro reducing attractiveness to imports, polyolefin and polystyrene prices became increasingly disconnected from feedstock costs.

Our latest apprentice

We are delighted to introduce our latest apprentice, Nicole, who joins Plastribution this month having just completed her ‘A’ levels.

Metallocene – it’s not all about downgauging!

Metallocene grades of polyethylene for film extrusion have been around for 20 years or so but there is still some resistance to their use based on the premium these materials typically attract and the focus on using them to reduce film thickness.

Continuity for Customer Service

Whether from the customer’s perspective the investment perceived is as active or passive, time and therefore cost is involved upon the part of the customer and this is often in contrast to the more obvious cost to supplier of having internal and external sales teams telephoning, emailing and visiting customers at their places of work.

Distributor of Substance versus Supplier of Straw – Part 3

In this case the customer was a critical supplier of medical equipment to the healthcare sector and was genuinely concerned that if they could not secure on-going supply of PE there was a real risk that hospital operating theatres may be closed and patients in ITU put at risk.