Market players forecast another price increase in H2 July. The basis for these assumptions is the progressing restriction on availability of both European and imported PE. However, the possible price rise will not affect all types of PE; HDPE rates may remain at today's levels due to low consumer activity, while the value of LLDPE and LDPE could increase by another €20-30/t.
Despite low seasonal activity, converters may fear potential shortages and make purchases despite production downtime.
PE
- Players claim that demand for HDPE has been below average with injection-moulding HDPE has been experiencing minimal demand,
- A Serbian manufacturer is fulfilling its contractual obligations but lacks sufficient quantities for the spot market,
- Players note a shortage of Egyptian-origin PE,
- One of the largest European producers, has informed its clients of planned repairs on its production lines starting from August,
- European manufacturers are attempting to raise PE prices,
- Interestingly, there were offers in the market from producers with very high prices, but traders did not accept them,
- Import HDPE film has significantly appreciated since late June, by €60/t,
- Similar to June, there is a shortage of LDPE with an MFI=0,3 in the market,
- Players note that demand for LLDPE has been at a moderate level, but they expect consumer activity to increase soon,
he value of European-origin LLDPE has risen. The lower limit of the average market range has increased by €70/t. On average, the price has gone up by €45/t.
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PP
- Market players have noted a moderate demand for PP,
- Some traders are still awaiting offers from major European producers,
- Traders' early July value indications suggest a price rise of €10-20/t,
- There is no material shortage in the market, but there is information about limited availability of high MFR PP copolymer and PP random with MFI=45,
- Market participants have reported significant delays in deliveries from South Korean producers.
