Polymer prices - unchanged European prices and strengthening demand expected in June

29.5.2026

The past week was basically characterized by apparent oversupply, with plastics converters not buying, trusting in the June price drop. Their expectations were based on the price erosion of recent weeks and the continuous arrival of seller offers. Polymer manufacturers were trying to fulfill their May sales plans, fearing that the high price period would soon end.

So, despite not having significant inventories, they followed stock market logic and tried to sell at a high price range, albeit at constantly decreasing prices. This logic is supported by the fact that monomer price expectations for June point mostly towards roll-over, with a possible price increase of 20-40 euros for ethylene at most. However, the explosion at MOL's Tiszaújváros plant on Friday is also likely to change the dynamics and direction of prices, with demand expected to strengthen and prices to stop falling.
Plastic converters have been waiting in recent weeks. There were two reasons for this: firstly, their customers also bought in advance and tried to use up their relatively expensive stocks, trusting that the polymer price increase was only a temporary phenomenon. Plastic converters also trusted this, and most of them - especially small and medium-sized ones - did not implement the April price increases, hoping that polyolefin prices would fall to the level of their current average inventory value. This belief was supported by the price dynamics of recent weeks, both the falling prices and the behavior of polymer manufacturers. However, production is continuing despite the wait, they are slowly using up their stocks, and they will have to buy soon, at the latest by the beginning of June.
Central European polymer producers, however, do not have large inventories, partly due to maintenance work that has started and is ongoing, and partly due to the surplus sales achieved through price cuts. If plastic converters start buying again, there may be availability problems. The import shipments on the way are of general grades, affecting only a few applications and their supply. 85-90% of the areas of use depend on the supply of Central European manufacturers. Nevertheless, the market's price expectations and sentiment are influenced by the low prices of import shipments arriving in the second half of the summer.
Mental instability in the market is the surest sign of a crisis. The mood can change quickly. The expected significant reduction in polyolefins production at MOL's Tiszaújváros plant makes it clear that tight availability is expected in the coming months. Thus, demand will strengthen next week, while availability is limited in Central Europe for all polyolefins and, presumably, PVC as well. This could cause a minor panic, a halt in the price decline, or even an upward price correction in the last week of May.

Author: myCEPPI