The end of September has seen increased demand for polyolefins compared with the middle of the month in the Polish market. "Many converters were not making purchases, waiting for lower prices. However, when it became clear that traders would not decrease prices but only adjust them upwards, producers of finished products began to express interest in the materials," a Polish trader has commented to Chem-Courier. Both food and industrial packaging segments, along with the pipe one, remain the most active consumers of polyolefins. The construction industry has also revived. Household appliance producers, as well as carmakers, are just moderately active compared with recent years.
Polyolefin shortages persist, with LDPE and LLDPE being the scarcest. There is want of PP and HDPE as well, according to its players. Many producers have allocated little material for spot sale in September. "We decided to buy larger volumes of PP than usual, but the manufacturer refused to sell it to us, explaining it by the lack of material for spot market," a trader has told Chem-Courier.
According to Chem-Courier’s data, LDPE and LLDPE has appreciated this week. The lower end of the film LDPE price range has risen by €50/t. C4-LLDPE quotes have also climbed €50/t. PP has held its value, but most quotes in the market are closer to the top of the range. Supply is expected to remain tight next month.
Producers plan to continue scaling spot allocations back to maintain prices or even raise them. The situation will most likely stay the same until the end of the year. Ethylene and propylene prices are projected to get €50 - 70/t higher next month in view of feedstock appreciation. Polyolefins will get more expensive too, Chem-Courier believes.