Weekly commodity price report

May is a short month, even though it consists of 31 days. There are at least two, but in some countries, 3 holidays per week on working days in May. Many have already taken leave for these days. This has marked the demand as well. The demand is weaker than in April. It is true that many, anticipating price increases, have pre-purchased in April.  Usually supply is good, from all feedstocks. However, sometimes some feedstocks of some producers are not available immediately or are out of stock.

A good example is LDPE. The two southern (Romanian and Serbian) producers, due to the lack of ethylene monomer, did not offer LDPE grades for sale or suspended their deliveries last week. At the same time, in the southern region, cheap Central Eastern LDPE is available below local producers’ prices. However, polymer producers in the central region are enjoying the opportunity of higher prices and good demand from the Western European market and are trying to sell as much as they can in Western Europe. Mainly in Germany and Italy. Thus, the Hungarian and Slovak LDPE is not evenly available in the central region. Meanwhile, in Poland, supply is good, LDPE is available from many sources, including both Slovak and Hungarian sources. Here, rather restrained, cautious demand is a problem for sellers.

There is also the expectation behind the not too high demand that the converters anticipate a halt in the price increase in June. However, this is still questionable. Spot monomer prices show that there is still room for growth in olefin monomer prices, and a price increase of 10-30 Euro is still possible in June for both propylene and ethylene.

SM prices started dropping. Behind this, there are most recent arrivals of North American SM shipments. Since the end of April, PS customers expect price adjustments and price cuts in June. They seem to be right.  At the beginning of June, the SM plant of Shell in Moerdijk (450 kt / year) and in Trinseo Böhlen (280 kt / year) is expected to restart. This significantly increases SM supply in Europe.

Polyolefin grades

Typical LDPE prices were in a range of  1,070-1,180 €/t last week.  The cheapest polymer grades in a range of 1,070-1,100 € / t are mostly imported from outside Europe and from CIS countries. Available through trading companies. Locally produced materials were available in the range of 1,100-1,180 € / t. However, the availability of grades between 0.8-2 MFI is low.

The price ranges for HDPE prices are still wide, although the slightest increase in prices for the cheapest products was 1,100-1,280 € / t during the week. The cheapest polymer grades in a price range of 1,070-1,100 € / t are mostly imported from outside Europe and from CIS countries. The local and European HDPE was available in the price range of 1,170-1,280 € / t. Due to the increased Western European sales of the largest Central European producer, both unimodal and bimodal grades were available at a typical price of over € 1,200.

HDPE BM prices in Central Europe were in a range of 1,120 to 1,250 € / t. Generally, supply is good, the availability of MOL grades is short. Demand is good, appropriate for May.

HDPE IM prices were in a range of 1,125-1,250 €/t.   Generally, supply is good, the availability of MOL grades is short. Demand is good, appropriate for May. The cheapest grades are in a price range of 1,125-1,170 € / t, non-European import grades from Russia.

HDPE Film grade prices were in a range of 1,100-1,280 €/t in Central-Europe last week. The supply is good, goods from Russia, the Ukraine, Egypt and other countries are available on the market. However, the availability of the grades of Central-European producers is limited. Demand is good.

Typical HDPE (100) prices were in a range of 1,330-1,420 €/t last week.  The demand is not too high.  Pipe manufacturers stockpiled in the first quarter. The other main reason is that big projects that would boost the sale of large diameter tubes were not launched or are delayed for financial reasons.

The typical LLDPE C4 prices were in a range of 1,070-1,170 €/ t last week, depending on the grade and application area. The price range seems to be stretching.  The cheapest prices (1,050 - 1,100 € / t) were typical in the former Yugoslav republics outside the EU and Romania. Last week we have measured prices in a range of 1,110-1,200 €/t in the other countries. 

  mLLDPE (C6) prices varied in a range of 1,200-1,320 €/t, Supply is good and balanced. The problem is caused rather by traders, sometimes with surprisingly low prices for grades produced in March-April.

Typical PPH prices increased following monomer prices. Last week's price range was 1,190-1,300 € / t. Both southern producers increased prices. In Serbia, the cheapest duty-free Russian PPH was 1,170-1,190 € / t. In Poland, there is cheap Russian PPH again, but the price is in a range of 1,190-1,220 € / t.

Typical PPH Raffia prices were in a range of 1,170-1,280 €/t last week.  The supply is tight from the cheaper grades. However, availability above 1,215 € is already good.

The price of non-special PPM IM grades with medium melt index was in a range of 1,180-1,330 €/t last week.  The prices of high flow index products were in the price range of 1,200-1,300 € / t. The supply is good, demand is not too high.  

Typical PPC prices were in a range of 1,290-1,380 €/t in Central-Europe last week.  Producers are continuously supplying converters. Traders, however, have few commodities.

The PPR price range was 1,300-1,410 €/t, depending on the grade, producer and application area last week.  There was a minor price correction. Demand is lower than expected, especially for tube types.

The typical prices of the last week are presented in the table below (full truck load 20-22.5 t):

Polystyrene grades

EPS prices were in a range of 1,380-1,420 €/t last week. Though the price increase was accepted on the market. However demand is lower than expected. Partly due to weather, partly due to expectations of price reductions for SM.

Typical GPPS prices were in a range of 1,230-1,400 €/t, while HIPS prices were in a price range of 1,250-1,530 €/t last week. Supply is broad. There are also Russian, Iranian and Egyptian products on the market. In this price environment, GPPS prices higher than 1,320 Euro and HIPS prices over 1,400 Euro are typically uncompetitive. Demand for European products may be stimulated by a possible price drop in June.

ABS prices were in the price range of 1,580-1,710 € last week.  The supply is wide-ranging from both European and non-European materials. Increased import inflows can be expected in the coming months, especially from Asia, from the Far East.