Based on problems with the availability of imported materials, European producers will attempt to maintain prices at the level of the previous month or slightly raise them. However, the market, specifically finished product manufacturers, do not yet accept the forecast for cost increases and believe that traditionally prices in July should decrease. Most likely, in the first week of July, PE producers will try to announce rates at the level of June or with a small mark-up, and the second week will show whether the market accepts such offers.
Due to increased freight rates and reduced availability of imported PP, prices for this material may rise. However, a sharp surge is not expected due to the market's traditional slowdown and consumers' reluctance to purchase PP at significantly higher rates. Traders plan to refrain from placing orders for PP delivery from Asia in the near future due to high price risks.
It is forecasted that the situation with imports and container availability will normalise closer to September.
PE
- The final week of the month traditionally has seen limited activity among converters;
- As Chem-Courier has previously reported, most players have noted constraints in the availability of blow-moulding HDPE, although some traders have indicated having stocks in warehouses;
- Some traders have claimed they have begun offering material with a minimal discount of €10—15/t since mid-month, yet the average market price has remained unchanged;
- Interestingly, the current price for European-origin HDPE has decreased by approximately €50/t compared to May, while the value of imported one has gone €10/t up compared to end-May;
- Market participants have reported significant delivery delays from Asian manufacturers in H2 June.
PP
- The last week of the month was minimally active;
- Last week, European manufacturer PP production plant in Germany declared FM, affecting homopolymer supplies, while copolymer production remained unaffected;
- Market participants have reported significant delays in shipments from South Korean producers;
- Players have noted limited availability of high MFR PP copolymer and PP random MFI=45 from European manufacturer.
