Polyolefin prices surge in Poland amid shortages

Polyolefin prices surge in…

European polyolefin manufacturers are attempting to establish a new price level in the Polish market. Despite the minimal increase in the prices of monomers, polyolefin producers have sharply raised their prices. It is likely that due to low demand and the ability of some converters to wait out February without making purchases, almost all producers have reduced the amount of raw materials available for sale.

It should be noted, however, that there are some in the market who do not believe that prices will hold at this level. Low demand may force producers to make concessions. Nevertheless, Chem-Courier believes that this is unlikely, and converters are more likely to accept the prices.

Due to market instability, some converters are accepting orders for finished products without specifying a price. - When accepting an order, we cannot set a price because we do not know the cost of raw materials and whether there will be enough of it to meet demand. Today's situation reminds me of the beginning of the COVID-19 pandemic - says one of them to Chem-Courier.

Converters note that pipe production is at a low level. Manufacturers expect the return of funds blocked by the EU, some of which will go towards revitalising the construction sector in Poland. This is likely to happen in a few months. Meanwhile, Asian pipe HDPE is arriving with a delay, according to market players.

Due to the limited availability of LDPE in the market, its price has increased the most. The current average market price is €180/t higher versus previous month. HDPE prices are €60-80/t higher compared to the end of the previous month, while PP prices have risen by €60-110/t. More information regarding current market prices and offers can be found in the Chem-Courier. Polski Tygodnik Poliolefin report.

Chem-Courier believes that the situation with material availability in the market is not expected to improve by the end of the month. Due to the possibility of further shortages, prices may be adjusted again in mid-month. Converters who did not plan to purchase material in February at high prices may decide to make purchases in H2 February.

Photo source: depostphotos.pl

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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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