Polymer prices - In general, a rollover can be expected, but PS and PET are likely to see a small price decrease

5.6.2025 Plastic granulates, raw material sales

The last week of May was characterized by weak demand, with converters typically holding off on purchases. Smaller companies were expecting a possible price decrease in June. Large-capacity converters are optimizing their inventories, as it seems that there are no supply problems to be expected in the coming period.

This is also why some large converters were still buying at May prices last week. The June contract olefin monomer prices have not changed. European polymer manufacturers are preparing for a rollover. However, converters are confident that a smaller price decrease is possible.

The basis for the price decrease expectations is that selling pressure was felt on the polymer producer side in the last weeks of May. Selling pressure is unlikely to change, as we still do not expect demand to pick up, but we do not expect demand to fall. Due to the difficult-to-predict end-user demand, converters work with relatively low inventory levels, do not buy in advance, and continuous purchases are typical. This trend will most likely characterize the June-August period as well.

Regarding polyolefin prices, it was already observed in May that polymer manufacturers were setting their prices relative to each other, especially in the case of polyolefins. This means that a kind of "game" begins to develop, with one dominant polymer manufacturer or trader publishing a price, and the others adjusting their own price positions to it, often in several rounds. As a result, a kind of "relative price system" is created. Once a price level acceptable to converters has been established, purchases take place relatively quickly, as happened in May. In the week ahead, final prices are not expected until Thursday. However, selling pressure will persist throughout the summer, so will the possibility of price bargains.

The June contract price for styrene monomer is not yet known, but market players do not expect a significant change, with a small SM price drop of 20-30 euros possible. European PS producers are likely to attempt a rollover, however, due to significant import pressure, a slow erosion of average prices is likely. European polystyrene manufacturers are trying to reduce supply, which is also why one Central European manufacturer stopped production last week.

Author: MyCEPPI