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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. The intensive use of energy in polymer production brings additional inflationary pressure as energy costs continue to escalate. The market for polymers is proving resistant to a full pass-through of these costs, citing a combination of softer demand coupled with better availability as justification for pushing back.

In the case of polystyrene, the feedstock increase is being forced through to customers with greater effect.

The premium for C3 (propylene) over C2 (ethylene) is symptomatic of the relative shortage of this feedstock, which in turn translates into a tighter PP market with more significant pass through of increased costs.

November is the last normal month of the calendar year, and trading conditions in this month will set the scene for December and the start of 2022.

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Feedstock Change (Contract)
C2 (Ethylene) £78.39
C3 (Propylene) £80.50
SM (Styrene Monomer) £196.60
Benzene £49.15
Brent Crude £26.61

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Meet Plastribution Group's elastomers business

Elastribution is Plastribution Group’s distribution business for speciality elastomers and related products.

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