Although polyolefins have got cheaper this month, converters have still been holding off restocking and have been reduced purchases compared with October. "Manufacturers of finished products have full warehouses. Even champagne cap makers, which traditionally get more active before the holidays, have no plans to make purchases this year. People just don't have money", a market player told Chem-Courier.
There is talk that a large amount of low-priced film has been imported into the country from Turkiye. "I have to have zero production margin to compete with its price", a packaging maker commented. However, traders continue describing the packaging industry as the most active. "We see that the strongest demand comes from film HDPE and LDPE, as well as from blow-moulding HDPE consumers", a Polish trader has told Chem-Courier.
Sluggish demand has resulted in a PE and PP surplus in Poland. PP block copolymer spot prices have moved €45/t down to €1,150 - 1,230/t this week. Likewise, off-grade materials have got cheaper.
PE and PP consumption will hardly increase by the year end. Traders believe that polyolefins will depreciate further. In December, PE and PP may lose another €30/t and €30 - 40/t respectively. Polish traders are pessimistic about the market future. "I don't know what should happen for purchasing activity to pick up", a market player complained. Converters have no plans to restock even with cheaper commodities. "Now, few people are taking risks. Also, converters cannot enter the new year without any financial cushion", a trader explained.