The tense political situation in various parts of the world may affect the plastics market in Poland. A Hungarian PE producer, for example, will face the issue of oil supply diversion.
Judging by the first market offers, the price in August will increase by €30-60/t; however, whether the market will accept the increase will be known by the end of next week.
European PE producers plan to increase prices next month in line with rising ethylene rates. According to Chem-Courier forecasts, the value of ethylene is expected to advance by €20-25/t in August.
European producers of LLDPE and LDPE plan to increase prices next month in line with the rise in ethylene costs.
As forecasted by Chem-Courier, due to shortages of certain materials in the market, their prices have increased. However, if there are further increases, it will be by another 10-20 euros.
Market participants anticipate another price increase in the second half of the month. Such assumptions are based on the progressive reduction in the availability of polyethylene, both European and imported.
Based on problems with the availability of imported materials, European producers will attempt to maintain prices at the level of the previous month or slightly raise them.
As previously reported by Chem-Courier, demand for food film and plastic bottles may increase in the near future due to European events such as the Olympics and the Football Championship, which will take place this summer.
We now have to live with fluctuating prices and volatility. It is important to identify the phases of the cycles well; buy at the right time and in sufficient quantities
Market players expect only a modest increase in demand.
PE, PP demand continues to remain low in Poland. Market players note that off-grade material has been more popular this month.
Sluggish demand continues to negatively affect market conditions. Low demand in Europe is likely to prompt further price declines next month.
