European PE producers plan to raise prices next month

European PE producers plan to increase prices next month in line with rising ethylene rates. According to Chem-Courier forecasts, the value of ethylene is expected to advance by €20-25/t in August. The situation with imports is expected to improve in September. However, the Hungarian PE producer may face difficulties due to tightened Ukrainian sanctions on the Russian oil supplier Lukoil, which has resulted in the closure of a pipeline supplying materials for LDPE and HDPE production. The Hungarian government has 80 days' worth of oil reserves but is already actively seeking solutions for oil deliveries from Russia. According to pipeline maps, producers in the Czech Republic may also encounter challenges.

PE

• Traders have reported that July has been a fairly good month for HDPE sales;
• Some European companies, have already closed their order books this week, according to Chem-Courier;
• European producers plan to raise LDPE prices in line with the increase in ethylene rates;
• Imported products might become even more expensive by €70-100/t;
• Players have reported that there is available imported LDPE in Poland;
• The availability of LLDPE has decreased in the market, prompting some companies to try raising material prices. However, the minimal demand observed this week prevents them from doing so;
• There is a shortage of imported LLDPE on the market, and it is forecasted that the situation will improve in H2 September;
• Until H2 September, a price decrease is unlikely, though rates may drop in October.

PP

• PP homo demand has been sluggish at the end of the month, partly due to the closure of order books by some European producers;
• Some converters, anticipating a price increase next month, are already trying to place orders with delivery in August;
• There has been a limited supply of imported material in the market;
• Notably, some European producers have maintained prices at last month's level;
• Some producers have already begun offering their material at higher prices than in H1 July, explaining this by the anticipated rate increase in August.