According to Chem-Courier, the polyolefin market in Poland is awaiting price announcements and volume allocations from manufacturers. Traders report that some converters have sent purchase inquiries for materials this week, aiming to secure purchases before another price increase. However, not all traders had the necessary stocks in warehouses, and those who did raised prices once again.
There is a shortage of off-grade materials and virgin LDPE. Production halts have occurred in several plants, contributing to the current market situation.
The propylene contract price has risen by €15/t compared to January. Some manufacturers are expected to announce PP price increases, with unofficial reports suggesting a minimum of €200/t. However, market acceptance of such a hike is doubtful.
Forecasts indicate that the PE price is expected to rise similarly to PP quotes, or slightly less, following the ethylene price increase. A shortage in the LDPE market may lead to a substantial price increase of more than €100/t for this material.
- Prices continued to rise throughout January, and there is already talk of a new surge in cost by an additional €100/t. However, there is a general understanding that such a price might not be accepted by the market and could decline by mid-February - forecasts one of the market players. While panic sentiments among converters linked to anticipated material shortages are possible, many have some reserves of raw materials and finished products. - Our clients, major converters, indicate that they will wait out February and refrain from purchasing overly expensive materials. They don't have significant orders, and there is inventory on their shelves - says a Polish supplier.
