Price know-how March 2016

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

The decline of the GBP against both the € and $ has been spectacular, with a 7 year low recently recorded against the USD. The weakness of the GBP is likely to continue as long as there is uncertainty about the EU in/out referendum outcome. Therefore, it looks as if we have to live with a few months of the markets regarding the UK economy being weak. For UK polymer prices this weakness results in very real inflationary pressures.

For March, the further reduction in the value of Sterling has negated the €20 reduction in C2, created a £15 delta on C3, and exaggerated the significant €100 per tonne Styrene Monomer increase. These inflationary pressures also apply to Engineering Polymers where materials are typically either priced in USD or Euros.

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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.