Polymer prices - narrowing availability, rising prices without panic buying
These expectations are driving the price increases of the past week; European polymer manufacturers have sought to implement the price hikes originally expected for October as early as the last third of September, thereby extending the period of higher prices.
Most market participants expect a contractual price increase of 60–80 euros for olefin monomers in October; polyolefin prices have risen by more than that over the past two weeks. This process reduces negative spreads, but does not turn them into positive ones. Average Central European polyolefin prices are still well below contract olefin monomer prices. However, NAPHTHA prices have become very volatile, so almost anything is possible for olefin monomers, even a near roll-over, but also a triple-digit price increase. In the case
of styrene monomer, expectations show a price increase of 100-150 euros. But some players do not rule out an SM price increase of even 200 euros.
European polymer manufacturers and traders are trying to take advantage of the current feedstock situation and support price increase expectations with order stops. Although this does not generate a buying panic, the majority of converters are trying to purchase additional quantities to increase their security of supply. Central European polyolefin supply is expected to further narrow due to ongoing and expected Central European shutdowns. Availability is already limited for HDPE Film grades, LDPE and LLDPE Film grades are only available at a higher price. On top of that, imports from North America and Egypt are also delayed.
Demand is expected to be good in the first half of October, but the fall season will be short, similar to past years; thus, plastics converters will no longer stockpile in the second half of October. Demand is expected to decline by the end of October. This may also be accompanied by a "calm down" in the feedstock markets, with a possible, smaller drop in oil prices expected in November.
These expectations also determine the converters’ purchasing strategies. As a result, in addition to the 50-150 euro polyolefin price increases passed on in the second half of September, it is unlikely that converters will be able to accept further price increases at the beginning of October. The demand for the final product does not support this. There is room for price increases only for products that are very scarcely available, these are typically MDPE Film grades.
Polymer manufacturers must pay particular attention to pricing policy, as the polymers produced must be sold, and there is still sales pressure. In addition, the currently delayed import shipments will arrive in the second half of October at the latest, which could significantly increase supply. November and December will be characterized by price pressure.
-
Genesis Polymers Europe and Velogy bring European PP and PE production closer to customers at Fakuma 2026
The joint presence at Fakuma (Hall B2, Booth 2310) showcases a growing European polyolefin platform that combines Velogy’s production capabilities with... -
VACULA s.r.o.: Stable supplies of plastic granulates even in uncertain times
In the current complex global market environment, influenced among other factors by geopolitical tensions, many companies are facing uncertainty in supply... -
LIFOCOLOR explains how to choose the right masterbatch granule size
Are you dealing with colour inconsistencies, material segregation in the hopper, or inaccurate dosing? One possible reason may be an unsuitable granule size....
