Market activity
has slowed down in Poland this week. Those customers who needed volumes have
already made purchases earlier this month. Others have postponed buying
believing that prices will not stay at this level for long time. Reminder: from
beginning of 2024, HDPE, LDPE and LLDPE has appreciated by €130/t, €250/t and
€200/t, respectively. PP homo- and copolymers have gained €190/t and €130/t in
value since early January. Nevertheless, most probably March will bring another
round of increases in polyolefins quotations.
LDPE supply has remained scarce as part of producers has closed order books already in the first decade of February and others have cut their available allocations. Supply of off-grades has remained short as well. PE and PP spot prices have remained unchanged even though LDPE and PP quotes heard in the market have been varying significantly with price gap reaching €100/t between them, market players have told Chem-Courier. ‘Everyone is confused by the current situation,’ a supplier has said.
New monomers contract price will be announced next week. Ethylene and propylene is expected to move €20—30/t and €40—50/t up. PE producers will most probably want to increase prices by another €100—120/t while PP ones are expected to announce €70—80/t appreciation. However, the real price increase will depend on converters’ decision whether to purchase now or postpone buying further. So far, Chem-Courier believes that PE prices may gain €40—50/t with LDPE ones reaching €1,400/t DDP. PP is expected to get €30/t higher.
LDPE supply might improve as soon as the Central European manufacturer resumes production after prolonged repairs. PE offers from the USA will be limited in view of less availability from the US sellers for export allocation. PP market will be balanced as long as new import arrivals are available for purchase in the region. Overall, the situation with reduced polyolefins supply as well as firm price levels is expected to continue through March and April at least.
