According to Chem-Courier’s information, pipe producers have been particularly active. Blow-moulding and film HDPE has also been in demand. However, this material has been available only from several traders.
Producers have reduced spot sales of polyolefins to a minimum this month because they have either cut capacity utilisation or have been stockpiling the materials. Furthermore, some European plants have been under unscheduled maintenance. As a result, the traders that have the commodities in stock have been quoting higher prices for them than they did last week.
Blow-molding HDPE, which has been in great demand this week, costs €1,050 - 1,100/t DDP now. This means that the upper end of the price range has increased by €40/t. The situation with film HDPE is similar: the top of its price range has climbed €30/t to €1,100/t.
Film LDPE has passed the €1,000/t mark. This is the case for polypropylene as well. The traders with the material on hands are trying to lift prices by €20 - 50/t compared with last week. Some traders are more optimistic about September and hope they will be able to 'get some money' then, while others believe that the situation will hardly improve until the end of this year. Supply will remain tight until early September when producers are supposed to announce new allocations and contact prices for the month. Meanwhile, the news of improving market conditions in China is no longer relevant. The country’s economy is far from booming and, according to the latest official data, is unlikely to recover any time soon. Germany is also sliding into recession. Some experts say that "belief in Germany as a business location is waning".
Poland is in similar circumstances. Demand and prices will show a minimal, if any, rise in September. Producers may set prices at the same levels that traders are quoting now. Film HDPE prices may go €30 - 50/t up on expectations of stronger demand for this type of the material. PP prices may rise by €30 - 40/t next month.