According to Chem-Courier’s data, PE demand is below average in Poland. PP, especially random copolymers and high-MFI injection-moulding grades, in contrast, are sought after. However, a shortage of those PP types led to inability to fully cover the current customers’ needs.
Rising PE and PP prices have made some converters start looking for the cheap imported material. "This week, we bought two trucks of PP homopolymer from an Israeli producer at a price lower than European producers quote. The plant delivers the material regardless of the military conflict in the country" - one of them told Chem-Courier.
The packaging and pipe industries remain the most active polyolefin consumers. Food film producers, on the other hand, informed that the market had shrunk by 20% since last year, according to their data. The construction industry is relatively sluggish, but it is expected to recover next year.
Spot prices have remained at previous week's level. However, converters say that they have managed to beat suppliers down somewhat this week. Blow-moulding HDPE has held its value of €1 150 - 1 250/t DDP Poland. European producers are quoting film LDPE €1 200 - 1 260/t. The spot market value of PP homopolymers has reached €1 150 - 1 200/t. A large number of offers from foreign and European producers, including prices for off-grade raw material, can be found in the Chem-Courier. Polski Tygodnik Poliolefin report.
Prices will remain at the current level until early November. There are prerequisite for a pick-up in polyolefin demand in the near future. As for November outlook, some players believe that prices will, as usual, decrease, and others that they will stand still. ‘It is very difficult to forecast anything. Had the market responded instantly to any difficult situation in the world earlier, everything would have changed by now. The market does not react’, a market player commented. However, possible escalation of the conflict in the Middle East may lead to logistical difficulties and push crude oil prices up. At the same time, today's data shows a decline in them, which will set a downtrend in monomer and, accordingly, polyolefin quotes. However, PP and PE producers may attempt at keeping prices from falling by reducing capacity utilisation.