Converters resist manufacturers' desired price hikes

Converters resist manufacturers'…

Those manufacturers and traders that have still been open for orders, have raised polyolefins prices again. Some offer materials at €80-100/t higher levels than last week, but consumers reject these changes. Those who have raised prices by €40—60/t sell products but note lower demand. - The panic is more pronounced among manufacturers and traders. Now is the best time to raise prices due to reduced availability of imported materials and their appreciation and growing exports, namely to Turkey. However, converters lacking sufficient orders won't buy much material at these high prices - comments one market player. The food industry stands out among the most active sectors, with mentions of a revival in construction and agriculture.

Some materials face shortages due to both scheduled and unplanned repairs at European plants. However, there is sufficient material on the market to meet customer needs. - Even if a specific product is unavailable, converters substitute it with an accessible analogue - says a Polish trader.

LDPE is the most demanded product that has appreciated from last week by a significant €60/t to €1,130-1,190/t. There are offers at the upper end, but no information has been heard about deals at €1,200/t and above. Injection-moulding HDPE price has risen by €40/t to €1,110-1,180/t. However, offers higher than €1,200/t exist too with one of the European makers has been offering its material at €1,210/t DDP. PP value has risen by €25-45/t. Market players note no change in PP random price, with offers heard below average market prices.

Some players predict price stabilisation, while others anticipate further increases. However, Chem-Courier believes that the last week of the month is expected to be stable in terms of price fluctuations. Monomers contract prices are expected to move up at the end of next week. After that, polyolefin manufacturers will aim to increase prices by €100-150/t. The market is likely to resist such price hikes, and by mid-February, prices may stabilise at around €50-70/t higher levels compared to current quotes. The ongoing Red Sea conflict will continue to impact the market, but panic and stockpiling from converters are not expected. Having reserves in warehouses, many large converters plan to refrain from purchases in February if prices are too high.

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Polyolefins Market Weekly, PVC Market Weekly; PE, PP, PVC prices and market trends in Europe, Asia, the Middle East, Turkiye, the USA.

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