In Poland, participants in the polyethylene market hope for a demand recovery in the second week of the month after a weak start in May. Producers of finished goods were hoping for a decrease in material costs, which prompted them to take active steps in the first working week of the month.
The polypropylene market in Poland has been showing signs of poor activity for an extended period. Market participants point to a decline in orders for finished products, stagnation in the automotive industry in Europe, as well as overall economic slowdown.
Recently, there has been some turmoil in the market, caused by actions taken by the White House administration and reactions from China and the European Union. Market participants closely followed the changing situation regarding tariffs.
Propylene contract price is expected to decline in April. Many traders do not see positive prospects for the polypropylene market in the coming months.
The demand for polyethylene decreased in March. Converters, observing the decline in crude oil prices, expect polymer prices to drop in April and are taking a wait-and-see approach.
Low demand for polypropylene hindered price large increases despite producers’ efforts to improve margins. Throughout February, traders hoped for a market revival at the beginning of March, when the construction and agricultural sectors are traditionally more active.
Market participants assessed that the polyethylene demand will slow down by the end of the month. The announced order stoppages for this material as well as production overhauls further limited the number of transactions.
Prices in the polyolefin market in Poland in 2024 changed due to various factors, such as: the level of demand from converters, the availability and quantity of imported material, the price of oil, the impact of the overall European economy, as well as the geopolitical situation worldwide.
After increased activity in mid-January, the PP market calmed down and by the end of the month prices remained stable. In H2 January, converters started to inquire materials for February delivery.
During the first working week of the new year, following a long holiday break, the market remained relatively slow. By midweek, there was still a lack of clarity regarding pricing policies from producers.
Most players expect the market to recover only in mid-January or early February, following the holiday season and the associated downtime.
Given market players' expectations of a rise in material costs in September and the end of production downtime for most converters, demand is likely to increase next week.
