Polymer prices - partially successful polystyrene price increase, unsuccessful polyolefin and PVC price increase

The price increases that tracked the smaller monomer price changes did not pass, and in fact the price correction for LDPE has started, so that the upper end of the price bands has already fallen below January levels. In the case of polystyrenes, price increases below 100 euros were successful, but the full SM price change did not pass. Converters expect a seasonal, not sharp, price increase in March.

The clear opinion of polymer manufacturers and compounders is that a smaller monomer price increase of 15-20 euros is almost impossible to pass on, their customers expect the margin loss to be "absorbed". A higher olefin monomer price increase of around 50 euros is a sufficient argument, but neither converters nor their customers are prepared for a price increase. Thus, even if there is a significant increase in olefin monomer prices, it will only be partially passed through in March. Feedstock prices have decreased compared to the past week and are now at the level of early February, but are still 11% higher than at the beginning of January. The value chain is still under pressure from the unrealized February monomer price increase, but as feedstock prices fall, the pressure is easing. Polymer producers expect an olefin monomer price increase of more than €50 in March. However, the final value will depend largely on the feedstock price.

Importers are also preparing for a smaller polyolefin price increase of 15-30 euros in March, which will also support the price increase of European grades. However, demand will play a key role in price increases. Demand in the packaging industry is good, and film manufacturers reported a good start to the year. The construction industry and agriculture are starting slowly, but the second half of February and March are expected to bring a pick-up in demand. Even with the expected pick-up in demand, only a moderate price increase is possible in March, as converters are under price pressure on the one hand, and imports from the Far East will pick up in the second half of March and early April. By early April, we should see a larger influx of shipments, which will probably bring prices down after the Easter holidays, similar to 2025. Converters are aware of this, so those who have stocks will wait.

In the case of polystyrenes, it seems that we can still expect a SM price increase, but it will no longer be three-digit. Consequently, a major increase in polystyrene prices exceeding 50 euros is not expected, with the exception of ABS. Especially because incoming imports are constantly limiting the price-raising possibilities of European manufacturers.