Polymer prices – weak demand and price corrections

The selling pressure is being felt most in European polymers. The majority of import items are still on their way, and are expected to arrive in the last week of January and February. With feedstock prices on the rise, and changing hectically, there is a high probability of a €40-60 olefin and €20-60 styrene monomer price increase.

European polymer producers attempted to implement a significant price increase in early January compared to December, despite falling olefin monomer prices. But last week, weak demand forced polymer producers to make price corrections. For most polymers, prices have returned to December levels. There is availability at both MOL and HIP-Petrohemija. In fact, import offers have reappeared, although they are not yet immediately available, but buyers are already comparing European prices to them. Prices for imported polyethylene from North America and Central Asia are typically lower than those in Europe. However, in an interesting turn of events, the price of polyethylene from the Far East, mainly from China, has risen by €30-50, significantly reducing their competitiveness. Just as the price of Chinese PVC is rising. This is due to the suspension of VAT refunds for exported PVC. What led the Chinese government to take this step while China is engaged in the biggest export offensive in its history? One can only speculate, but it is a remarkable fact that this move, which effectively blocks exports, coincides with another planned European anti-dumping action against PVC from the Far East. This is probably China's way of avoiding being subject to anti-dumping proceedings.

One of the reasons for the weak demand is that the typical January 2025 restocking in the packaging industry has not materialized. Heavy snowfall and cold weather also delayed the construction and agricultural season. After a long holiday period since mid-December, everyone was looking forward to a faster and livelier start to the year. For the time being, buyers are holding back, only those who did not stock up at the end of the year are buying. The week ahead is likely to be one of anticipation, which means weak demand.