The German commodity plastics market: mark-ups exceed prices for monomers

Tight supply and converters’ concerns about a bottleneck

The German market for commodity plastics appeared to have turned into a seller’s market, at least partly, in February. The supply of many commodities was tighter, according to EUWID respondents. There was not enough material to ensure that all buyers could secure the volumes they needed. PE plastics and both PP types were particularly affected by the development. Demand had been driven by concerns about a supply bottleneck and rising prices and was not a response to a “genuine” recovery in the end consumer economy. Sellers had been able to push through mark-ups running into the triple digits in some instances. Outside of the PVC market, shifts in the prices for primary polymers had been decoupled from the increases in monomers....

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