Polyolefins to keep getting cheaper in December

Polyolefins to keep getting…

Polish traders have agreed that November was a rather slow month in terms of sales. "Despite raw material depreciation, converters did not buy more, they continue to purchase raw materials only on an as-needed basis. Some of them are using the stocks built during previous months" - a market player has commented to Chem-Courier. Although there has been relatively few goods in the market, supply has been sufficient to satisfy slack demand.

There have been rumours about a shortage of monomers in the market. "Ethylene and propylene producers are fulfilling their contractual obligations, with large quantities of the material being difficult to buy in the spot market" - a polyolefins market player has said. Chem-Courier will elaborate on this information later.

Spot prices for polyolefins have remained unmoved. At the same time, traders keep providing discounts on larger orders. European blow-moulding HDPE has been traded at €1,050 - 1,130/t DDP, €100/t cheaper than in October.

Contract prices for both ethylene and propylene have predictably moved €30/t down in December. The downtrend may continue until March 2024, according to sources. On the other hand, the situation may be affected by oil production cuts announced by OPEC+ countries on 30 November.

Polish market players hope for an increase in consumer activity in December. "Converters may want to purchase more material than they bought in November due to another price drop" - a seller has told Chem-Courier.

In December, polyolefins prices will continue to go down, with polyethylene and polypropylene likely to be quoted €40—50/t cheaper.

Polyolefins Market Weekly, PVC Market Weekly; PE, PP, PVC prices and market trends in Europe, Asia, the Middle East, Turkiye, the USA.

Ukraine

Reportages