LDPE offers may reach €1,500/t in Poland

LDPE offers may reach €1,500/t…

According to market players, converters are making cautious purchases this month. Most large manufacturers of finished products bought more material in January ahead of the anticipated price increase. Medium and small players are acquiring materials only on demand, which is not at a high level. - Demand has certainly increased compared to the end of 2023, but it has not reached the desired level - says one market player. The situation in the construction sector has slightly improved and further recovery in the industry is expected.

There are issues with the availability of LDPE in the market, yet there is enough material to meet the limited demand. Supply is expected to improve in March when LDPE production restarts at one of the Central European facilities.

There is information that a significant amount of cheap imported materials ordered in December 2023 has entered the European market, including Poland. As a result, there may be offers below average market prices, but this situation will not last long, only until the material is sold out. In most cases, this situation applies to PP. Additionally, the price and availability of PP are influenced by a new player in the market. The new manufacturer has started supplying raw materials at a price below the market average.
Average prices for polyolefins have not changed. LDPE offers may reach €1,500/t, but there is no information about any completed deals at this price. HDPE prices are still around €1,200/t. More information on prices in Poland could be found at Chem-Courier’s Polski Tygodnik Poliolefin report.

Converters expect a decrease in polyolefin prices in March. - They believe that due to the demand not meeting their expectations, producers will give in and reduce costs, but such a scenario is unlikely - says a market player. It is worth noting that some manufacturers did not provide the requested volumes at the beginning of the month, counting on selling the same material at higher prices later. Some traders adhere to a similar system. In March, prices will either remain at today's levels or rise by €30-50/t for PP and PE, respectively, Chem-Courier believes.


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