Weekly commodity price report

The following factors influenced “commodity” polymer prices and price expectations last week:

• BRENT oil price 74.45 USD/barrel, slightly dropping prices
• EUR/USD: 1.1671, EURO getting weaker
• NAPHTHA: 643.43 USD/t, slightly increasing prices
• dropping SPOT monomer prices in July
• Ethylene (C2): 1,020 €/t, (FDNWE)
• Propylene (C3): 1,090 €/t, (FDNWE)
• Styrene monomer, (SM) 1,280 USD/t (FOB Rotterdam), slightly decreasing
• weak regional currencies,
• summerlike demand
• prices expected to drop,

Last week was characterized by low demand.  Those who wanted to buy did so as early as during the first week, then they went on holiday. While demand is low, so is the supply. According to converters they received less offers than usual. Price have hardly moved. Slight price decrease was reported in Poland only, yet in case of PP and LDPE this did not decrease the bottom value of the price bands either, there was rather a movement within the price bands.

Converters speculate on price decrease both with regard to PE, PP and PS. But there are very low chances for this with the exception of PS. Major maintenance activities are expected in case of CE polyolefin producers in the course of September-October. This will significantly decrease PP, HDPE and LDPE supply. The Olefin-2 plant of MOL Petrolkémiai Zrt. in Tiszaújváros will be shut down in September and the PP-3 plant of Slovnaft in October.  BOP plans a shutdown as of early October, for some 2 weeks. In the months of the autumn season when demand is high supply will be short. This will absolutely increase prices and spread. As a result prices in CE will get closer to those in WE, both in case of PE and PP.

However in case of PS, while demand is weak, expectations as to the price decrease in August are intense. These are not unjustified, SM Spot prices are continuously eroding, both on the European and Asian prices. Demand is, as demand for PS is low, weak. This supports a further price drop in August.

Polyolefin grades

LDPE prices did not change. This means a price range of 1,150-1,200 € in the central region.  In the SCE region local producers have further reduced their prices, here the price range is 1,130-1,170 €.  In Poland we have measured typical prices in a range of 1,140-1,180 €.  No major price changes can be expected.

HDPE supply is still short.  In case of BM grades in particular. The typical price range is:  1,170-1,220 €/t. On the Polish market prices are still low, BOP decreased prices slightly during the week. Also others were forced to follow, prices are in a range of 1,110-1,170 €/t, depending on the grade and application area. 

The demand for HDPE (100) pipe is good for the middle of the summer, the typical price range of 1,420-1,550 €/t did not change, but the average price has slightly dropped, most deals are made in the price range of 1,440-1,500 €/t. 

LLDPE C4 prices did not change, they are in a range of 1,080 – 1,190 €.  

 mLLDPE prices remained on the June price level, in the range of 1,290-1,400 €/t, depending on the grade, producer and application area.  Import grades from outside of Europe are missing on the market.

PPH had a good market also last week.  Supply and demand are balanced, none of them is strong. The typical price range is 1,180-1,260 € depending on the grade and application area. For the time being import is low, PolyoM material is being offered in Poland slightly below the market prices, but there are no quantities behind this. The weakening of regional currencies has slightly pushed prices down, in this way the direct prices of PP producers in CE start at 1,190 €.

PPC demand is lower than desired, as reported by polymer producers. The typical price range in June is 1,250-1,350 €/ton, depending on the grade, producer and application area. In low quantities materials imported from outside of Europe appeared on the market in a range of 1,250-1,300 €/t.

The typical PPR price range is 1,280-1,440 €/t, depending on the grade, producer and application area.  Because of the weakening currency the price measured in Euro has slightly dropped.

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

Polystyrene grades

EPS demand is still low.   Converters expect orders and further feedstock price decrease. The average price reduction by 50 € did not help boost the demand.   The typical price range remained 1,470-1,570 €.

The demand for GPPS and HIPS was weak last week.   The price of GPPS produced in Europe is in a range of 1,380- 1,490, and that of HIPS in a range of  1,440-1,550.  The price of import products should compete with these prices. In the southern region there is again GPPS and HIPS at prices by 30-40 € lower than the price of European products.