Weekly commodity price report

As expected, most polyolefin producers came out with unchanged polymer prices last week. Some producers have been trying to slightly increase their prices, but the markets were less willing to accept it. Thus, in the second half of last week, there were signs of rebound.  Supply is satisfactory, in case of PP it is slightly tight. Thanks to Unipetrol downtime and HIPOL feedstock supply problems. In the case of LDPE, it is likely that the supply will decrease, due to the expected maintenance at the MOL Group. However, these "constrictions" are most typical outside Poland. In Poland, supply is good, wide in case of all raw materials. Thanks to the high number of traders and distributors. Both LDPE and PPH supply is good, thanks to the inflow of cheap Russian materials. Their price level is lower than the market average. However this quantity is just a few hundred tons. But it is enough to turn down the price expectations of Polish converters. Expectations are heavily influenced by the significant drop in oil prices and the sudden collapse of NAPHTHA prices. There is also a growing negative global economic climate. And the resulting procurement caution. Due to the appreciation of the euro, import materials are becoming cheaper and so expanding supply of all polymer grades can be expected outside of Europe.

The price of SM dropped significantly (-143 € / t), although European producers reported lower polymer price reductions than this, but customers are not happy with less. Especially because non-European materials are available at very competitive prices. The price drop has not yet induced a sudden increase in demand. This is partly due to summer and partly to the caution mentioned above. Also, mention should be made of the upcoming Pentecost, which is a holiday in a number of Central European countries.

Polyolefin grades

Typical LDPE prices were in a range of  1,050-1,160 €/t last week.  The price band is very wide. Russian (Kazanorgsintez) materials appearing on the Polish market took the price band down. Thus, prices in Poland were in a range of 1,050 - 1,130 €/t. While in the rest of Central Europe, the price range was 1,080 -  1,160 €. Demand is good. In the week ahead, unchanged prices are expected.

European producers have not changed their HDPE prices. The exception is only one of the largest Central European producers. However, the intention to raise prices was unsuccessful. In Poland, from Wednesday, while in the rest of Central Europe from Thursday, it began to cut back its prices to last month's level. This is particularly important because goods from Central Asian plants are constantly being delivered to Poland at a price level of € 1,100-1,140 / t, and Western European grades are available through traders at similar prices. And the grades outside Europe and from the Ukraine are increasingly at prices below € 1,100 / t.

HDPE BM prices in Central Europe were in a range of 1,110 to 1,240 €/t. Polish prices were in a range of 1,110-1,200 €/t last week. While in the rest of Central Europe, prices ranged from 1,140 to 1,240 € / t. They did not change compared to last month. Supply is good, demand is low.

HDPE IM prices were in the range of 1,120-1,210 € / t in Poland, while prices in the rest of Central Europe were typically in a range of 1,130-1,230 €/t. Demand is at the present lower than expected.

The prices of HDPE FILM grades in Poland were 1,120-1,220 and in the rest of Central Europe in a range of  1,140-1,260 €/t last week. There was roll-over. Supply is good, demand is strong only for cheaper grades.

Typical HDPE (100) prices were in a range of 1,330-1,420 €/t and did not change compared to the previous month.  However, some producers have not yet published their prices. Demand is weaker than average.

The typical LLDPE C4 prices were in a range of 1,050-1,140 €/t last week, depending on the grade and application area. The price band is slowly moving down due to the stronger euro and the expanding import supply.

mLLDPE (C6) prices were in a range of 1,180-1,300 €/t, But basically there was roll-over. However, the price band moves downwards, as cheap mLLDPE from Western European sources is available through traders. The price-war in Poland, which moves downwards the prices of ExxonMobil's premium-priced products, does not favor the price level. Supply is broad. Demand is balanced.

PPH prices: most manufacturers have announced roll-over following monomer prices. A central European producer announced a price increase (10-15 €/t), however, the market did not accept it. The supply is tighter than usual. However, demand is also cautious.

Typical PPH Raffia prices were between  1,160-1,230 EUR/t last week. In Poland we measured prices of 1,160-1,210 € / t. While in the rest of Central Europe the prices were in a range of 1,190-1,230 €/t. Supply and demand are balanced.

The price of non-special PPM IM products with medium melt index was in a range of 1,175-1,300 €/t in Poland.  In the other parts of Central-Europe rather a price range of  1,180-1,300 €/t was typical. The price range of products with high melt index was  1,200-1,320 €/t. Customers were disappointed and wanted price cuts, so the demand was not as expected. Many will place their order as late as next week, anticipating minor price negotiations.

Typical PPC prices were in a range of 1,270-1,380 €/t in Central-Europe last week.  Prices below 1,300 €/t are typical form European grades and import grades available via traders. European producers have implemented roll-over.

The PPR price range was 1,300-1,410 €/t, depending on the grade, producer and application area last week.  European producers came up with unchanged prices in June as well.

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

Grade name	Typical polymer price ranges in the first week of June 2019, Central Europe (€/ton)
HDPE BM	1090-1250
HDPE Film	1090-1280
HDPE IM	1120-1250
HDPE Pipe (100)	1300-1400
LDPE Film	1060-1180
LDPE GP	1090-1180
LLDPE C4	1040-1130
mLLDPE C6	1180-1300
PPC	1280-1360
PPH IM	1170-1260
PPH IM HMFR	1200-1330
PPH Raffia	1160-1280
PPR	1290-1400
GPPS	1200-1300
HIPS	1235-1390
EPS	1240-1280
ABS	1430-1580

Polystyrene grades

The expected price correction for both SM and PS grades has come. Market prices mostly followed the monomer price change. The massive price cut has made buyers uncertain. Many expect further price cuts in July. Probably this uncertainty is the reason for the not yet strong demand.

EPS prices were in a range of 1,240-1,280 €/t last week. Demand is not high yet. But the real season is just starting. This might mean that demand will increase next week.

Typical GPPS prices were in a range of 1,200-1,300 €/t, while HIPS prices were in a range of 1,235-1,390 €/t last week. European-produced materials have started to approach the prices of non-European import materials. For the time being, European producers are reluctant to convey the full SM price cut, but the broad supply and low demand force it. Due to the strengthening euro, imports also have price reserves.

ABS prices were in the price range of 1,430-1,580 € last week.  The market immediately reacted to the SM price cut. However, European manufacturers are still reluctant to hand over the full price change. For this we will likely be waiting until next week. The demand is slightly lower than moderate.  Supply is good.