Polyolefin prices surge in Poland amid shortages
Due to low demand and the ability of some converters to wait out February without making purchases, almost all polyolefin producers have reduced the amount of raw materials available for sale.
Due to low demand and the ability of some converters to wait out February without making purchases, almost all polyolefin producers have reduced the amount of raw materials available for sale.
In the first week of February, demand and prices for polyolefins are increasing, while stocks of materials are proving insufficient.
Polish market players have reported better demand for both PE and PP from converters. Among other factors, this is why we are seeing another round of polyolefin price increases in Poland.
The polyolefin market has started reviving in H1 January. Market players say that in addition to completing December deliveries, they already have new orders for PP and PE, with the former bought more frequently than the latter.
The European market will operate in a kind of stop and go mode in 2024. This means that larger polymer manufacturers will schedule maintenance at different sites, thus limiting their emissions at the company group level.
Demand has been low in the Polish polyolefin market in the last pre-holiday week, according to Chem-Courier’s data. Converters have been tapping into their raw material stocks or purchasing only small batches.
According to traders, clients have been ordering both large lots of several hundred tonnes and small ones of under 24 t delivered on pallets.
Contract prices for monomers and, ultimately, polyolefins, have predictably moved down in Poland in December.
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
Polish converters continue to buy polyolefins on an ad hoc basis, and if possible, hold off new purchases in anticipation of further price cuts. Packaging remains one of the most active consuming industries.
Although polyolefins have got cheaper this month, converters have still been holding off restocking and have been reduced purchases compared with October.
Monomer contract prices were announced early this week.