Weekly commodity price report

Last week, polymer prices did not change significantly. Low prices have led to a slight increase in demand. So the prices were stable. The fact, that we are in the very middle of the holidays season curbs significant demand growth.  So does the fact that market participants expect monomer price roll over in August. This also means roll-over on the polymer market. Many people feel they still have time to buy in August. The fact that there is no significant stock pressure on most polymer producers is counterproductive for further summer price cuts. The majority of Western European producers who could not sell through their traditional channels have sold their products to traders. Being afraid of the low summer demand. MOL, the largest Central European player, is preparing for maintenance in September-October. So now it builds significant stocks. Only a few producers are struggling with pressure exerted by high inventories. Mainly in the PPC / PPR area. However, relying on prices starting to rise in September at the latest, they will not significantly reduce their prices. An “extra” 20-30 €  discount can be achieved with a larger order.

The situation is more difficult for polystyrene. For the time being, demand is weak despite low prices. Due to low prices, there is a smaller supply of non-European import materials. No significant change can be expected in August, as with the olefin monomers, even in the case of SM, we can expect a minor price change of “cosmetic” nature. Basically roll-over is likely.

Polyolefin grades

Typical LDPE prices were in a range of 970-1,050 €/t last week. They did not change compared to last week. All that has happened is that more and more people are trying to buy in a range of 970-1,010 € /t from cheaper materials. There was enough quantity in this price category last week due to the large sales of Western European polymer producers.

HDPE prices have also stabilized. Typical prices remained in a range of 1,030-1,120 €/t.  Like LDPE, there are more and more goods near the bottom of the price-band. Due to the weak demand, even Central European manufacturers are willing to grant a smaller discount of 10-25 € if there is a larger order.

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

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

HDPE Film grade prices were  in a range of 1,020-1,120 €/t in Central-Europe. Demand is low.

Typical HDPE (100) prices were in a range of 1,225-1,300 €/t last week. The demand is in line with the season. Demand improved slightly, it is even better than in May for some producers. Due to low prices  demand increased. Especially after the further significant fall in prices has become more and more unlikely.

The typical LLDPE C4 prices were in a range of 980-1,040 €/t last week, depending on the grade and application area. Demand is good, first of all in the price category below 1,000 €.

 mLLDPE (C6) prices were in a range of 1,120-1,250 €/t last week. The supply is wide-ranging from both European and non-European materials. Large Western European producers, Ineos, Repsol are increasingly looking to Central Europe as a target market and are trying to create a market place with low prices. This will force the market leader Exxon to lower the overall price level.

PPH prices remain the cheapest in Poland. They are in a range of 1,010-1,100 €/t. In other Central European countries, typical prices in a range of 1,060-1,150 €/t were measured. Polish prices rose slightly, stocks below 1,000 € were sold. Demand has increased due to low prices.

The typical price of PPH Raffia in Poland was 1,010-1,100 €/t, while in other countries of Central Europe they were in a range of 1,060-1,130 €/t last week. Demand increased. We do not expect price increases in August either, as the inflow of more and more goods is expected from Russia due to growing production and weak demand.

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 1,070-1,150 €/t. The prices of high flow index products were in the price range of 1,060-1,180 €/t. The price range came to be slightly wider downwards. In other Central European countries the typical price was 1,100-1,230 €/t. Demand is good compared to the season.

Typical prices for PPC were in a range of  1,170-1,270 EUR/t in Central Europe. Demand is not very good. Buyers expect additional discounts. Larger quantities can only be sold with a 20-30 € discount. The cheapest prices (1,150-1,210 €/t) were typical in Poland. In the other parts of Central-Europe prices fell slightly (1,170-1,270 €/t). Summer stoppages affect PPC most.  Many converters are already buying in advance for the second half of August.

PPR prices were in a range of 1,190-1,290 €/t last week. Demand and supply are good and balanced. However, in the field of pipe materials, some polymer producers / compounders have accumulated higher stocks in connection with the planned shutdown of MOL Petrochemical.

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 third 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	990-1070
LLDPE C4	980-1050
mLLDPE C6	1120-1250
PPC	1170-1270
PPH IM	1030-1150
PPH IM HMFR	1090-1230
PPH Raffia	1000-1130
PPR	1190-1290
GPPS	1090-1200
HIPS	1145-1250
EPS	1150-1220
ABS	1400-1550

Polystyrene grades

EPS prices were in a range of 1,150-1,220 €/t last week. Only the first quarter was good this year. The second quarter and there are fears that also the third will be pretty weak. While it would be worth buying now, most of the insulation materials producers are full of raw materials and finished products. But demand is still low. 

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. There is less material from outside of Europe or less competitive. Cheaper shipments from Iran and North Africa are expected to arrive in August.

ABS prices were in a price range of 1,400-1,550 € last week. Demand is weak due to automotive downtime. It is expected to remain low until mid-August. We expect significant demand growth after August 18th.