Weekly commodity price report

In the first half of last week converters tried to orientate themselves. However, until Wednesday, a large majority has submitted its order for July. Based on these, most people seem to have decided to buy. The fact that the producers resisted the pressure and did not make any further price cuts contributed to this. So the market stabilized for the second half of the week. The expected total collapse has vanished. And it seems that plastic converters are beginning to recognize that prices are close to the bottom. It is worth buying. The NAPHTHA prices are slowly approaching the May price level, at that time with an olefin monomer price higher by € 75-80. The feedstock side supports the monomer price increase. Monomer prices may be supported by the unexpected shutdown of the cracker of SABIC in Geleen (NL). However, clouds are gathering on the polymer supply line, and Russian demand seems to remain weak. This means that we can prepare for a major Russian commodity inflow in August. The presence of Russian polymer will be permanent from autumn onwards. On the one hand, SIBUR's new polymer plants (LDPE, HDPE, LLDPE, PP) start in Tobolsk, and Central Europe is a natural market for these products. On the other hand, traditional PE producers (Kazanorgsintez, Niznekamskneftekhim) on the Russian market are likely to lose from their domestic market share. In this way they will be forced to export more and more. Central Europe is also a natural target in this case. We can already see the signs on the Polish market. But cheap Russian LDPE / HDPE / PPH arrived in Romania and Serbia. For the time being, not in large quantities, but enough to expand the price bands downwards. Thus, we can expect a duality in the market, while we expect an increase in European prices, while because of the import from Russia and outside of Europe seeking markets polymer by 30-40 Euro cheaper than market prices will be continuously on the market. And this will mean a sort of continuous frustration for plastic converters.

Polyolefin grades

Typical LDPE prices were in a range of 970-1,050 €/t last week. Supply and demand are good. Prices between 970-1,000 €/t are mostly imported (Russian and non-European). Local producers are trying to keep their prices and are reluctant to let them down to below € 1,000/t. Their endeavor seems to be successful. In the second half of last week, Central European producers, who were operating at cheaper prices, were unable to meet the demand because of increased demand.

HDPE prices have also stabilized. The typical price range is 1,030-1,120 €/t. Demand is low at the present. In case of FILM grades in particular.

Typical HDPE BM list prices in Central Europe were in a range of 1,030-1,100 €/t. Demand is weak, summerlike.

Typical HDPE IM prices ranged from 1,020 to 1,100 €/t in Central Europe. Supply is good, demand is low.

HDPE Film grade prices were  in a range of 1,020-1,120 €/t in Central-Europe. Due to the upcoming EU regulation, converters are trying to find alternatives.

Typical HDPE (100) prices were in a range of 1,225-1,300 €/t last week. The demand is in line with the season. As the autumn season is still uncertain, cheap prices are not able to boost demand.

The typical LLDPE C4 prices were in a range of 980-1,050 €/t last week, depending on the grade and application area. Demand is good, especially in the stretch (agristrech) area.

mLLDPE (C6) prices were in a range of 1,120-1,250 €/t last week. The supply is good, it is widening. Products from new capacities in the Gulf of Mexico are also slowly arriving. Their prices are significantly below European prices.

PPH prices remain the cheapest in Poland. They are in a range of 1,020-1,100 € /t. In other Central European countries, typical prices between 1,070-1,150 €/t were measured. The Polish situation normalized last week, excessive price cut expectations ceased. The cheapest prices for larger producers ranged from € 1,030 to € 1,040. Only cheaper import (Russian) materials were available. Demand is good from the second half of last week.

The typical price of PPH Raffia in Poland was 990-1,100 €/t, while in other countries of Central Europe they were in a range of 1,060-1,130 €/t last week. Demand is getting stronger.

The price of non-special PPM IM products with medium melt index was in a range of 1,030-1,130 €/t in Poland.  In other Central European countries the typical price was 1,080-1,150 €/t. The prices of high-flow index products in Poland were in the range of 1,090-1,180 €/t in the other countries of Central Europe the typical price range was 1.120-1.230 €/t. Demand is good compared to the season.

Typical PPC prices were in a range of 1,170-1,270 €/t in Central-Europe last week. The cheapest prices (1,170-1,210 EUR/t) were typical in Poland. In the other parts of Central-Europe prices remained stable (1,200-1,270 €/t). In Poland, very cheap, small quantities of western European items are also available through traders.

PPR prices were in a range of  1,190-1,290 €/t last week. Demand and supply are good and balanced. Polish prices were in the price range of 1,190-1,250 €/t, while in other Central European countries the price range was 1,220-1,290 €/t.

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 second week of July 2019, Central Europe (€/ton)
HDPE BM	1020-1100
HDPE Film	1020-1120
HDPE IM	1020-1090
HDPE Pipe (100)	1225-1300
LDPE Film	970-1070
LDPE GP	1000-1070
LLDPE C4	980-1050
mLLDPE C6	1120-1250
PPC	1170-1270
PPH IM	1030-1150
PPH IM HMFR	1090-1230
PPH Raffia	990-1130
PPR	1190-1290
GPPS	1090-1200
HIPS	1145-1250
EPS	1150-1220
ABS	1400-1550

Polystyrene grades

Demand is generally good. However, there are still serious problems with EPS. The EPS season has not started yet.

EPS prices were in a range of 1,150-1,220 €/t last week. But demand is still low. For the time being, demand has not started to grow, yet demand in construction will grow significantly in Central Europe this year. It is expected that the second half of August will bring the expected recovery.

Typical GPPS prices were in a range of 1,090-1,200 €/t, while HIPS prices were in a price range of 1,145-1,250 €/t. They did not change compared to last week. Demand is good, converters are trying to buy in advance.

ABS prices were in a price range of 1,400-1,550 € last week. In spite of cheap prices, demand is not high. The uncertainty surrounding the autumn season is holding back purchasing.