Film LDPE grades, especially those with MFI=0.3, have been unavailable on the Polish market this week.
"We are asking from everyone, but no one is giving any volumes," a trader has told Chem-Courier. The US low-density PE has been heard offered for delivery only in November-December. Film and blow-moulding HDPE has been scarce yet still available for purchase. C4-LLDPE has been in short supply, while C6, C8 and metallocene grades have been plentiful in the country this week.
In contrast to PE, PP availability is sufficient.
"As for PP, there are high stocks on customers’ side; plus, lots of offers of foreign goods are heard in the market," a leading Polish trader has said. Suppliers are under pressure from customers rejecting offers of over €1,100/t DDP. "You can sell old stocks at levels below €1,100/t DDP, but you cannot do this with fresh bookings from producers (as September price is much higher)," they have added.
PE and PP spot prices have been unchanged in Poland this week. Demand has been limited. Firstly, some customers bought the commodities in summer when prices were attractive. As Chem-Courier predicted earlier, the surge in buying activity in August has turned into muted interest in September. This week, mostly buying on a need basis has been heard of. Secondly, producers increased prices sharply early this month and customers decided to take a wait-and-see approach to evaluate the situation. Finally, reduced supply from a number of European, US and Saudi Arabian producers has made it impossible to restock with some grades.
Both PE and PP will hold their value next week. If more LDPE grades become available for sale in Poland in H2 September, prices for the commodity may gain €30-50/t at the lower end of the range. Demand is unlikely to surge until the end of September. In October, prices, driven by more expensive feedstock and lower availability, will rise again, Chem-Courier believes.