Standard thermoplastics in August 2011: Worldwide market turbulence gradually settles / Month ends with firm rollover for polyethylene/ Margin losses abound / Notations likely to start firming again in September

摘要

August 2011 will be remembered as a very turbulent month. Initially, it looked to be relatively easy for producers to factor in at least the EUR 30/t rise in the cost of ethylene. However, by the second week, the downgrading of the US credit rating, the negative direction of the global markets and the slide in oil prices combined to slow polymer buying. The signs pointed to a downturn on a broad front, which led all players to be extremely cautious and killed off producers' hopes of winning a price increase. Polyethylenes and PVC retreated to the rollover line, while PP producers had little option but to pass on the EUR 15/t reduction in the cost of C3. PS and EPS producers were hit so squarely by the rise in the styrene contract - up EUR 125/t - that nothing less than passing the full increase seemed an option.