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.
However, the issue of supply remains the factor of greatest influence in terms of pricing. This is most notable in PS, where significant increases are expected as demand outstrips the limited supply.
The fortunes of Engineering Polymers are in contrast to the more standard polymers. Here the continuing slowdown in the global economy continues to exert downward pressure on prices and supply continues to be ample.
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The concept of a user friendly market report came from feedback about an article published in PRW (Plastics & Rubber Weekly) about the 2011 market outlook to which Plastribution made a significant contribution.