Market activity has been higher in H1 June than in the second half of the month mainly due to restocking activity right after the announcement of reduced new prices. In H2 June, converters have been slow to make new purchases regardless of special offers, discounts and traders minimal margins in anticipation of another price reduction next month.
Just like in mid-June, converters were buying only small batches of up to 24 t of the material ad hoc las week. The packaging and the pipe industries have been the most active buyers this month, according to market players. The construction one remains moderately active.
Injection PP prices have decreased by €20/t to €1,030 - 1,080/t DDP. PP copolymers have depreciated by €25/t to €1,080 - 1,180/t DDP. Film LDPE has been on offer at €950 - 1,030/t DDP this week, €10/t lower than last one. C4-LLDPE got €50/t cheaper to €950 - 1,030/t DDP over the last week. Market players attribute this change to flooding imports and minimal demand from converters.
Traders have been selling off their stocks this week to keep them minimal and enter a new month with empty warehouses. Contract prices for monomers have decreased by €40 for C2 and €50/t for C3, it will push down the prices for PE and PP as well. However, the depreciation of polymers may be not as significant as previously expected due to last week’s price decrease. Polymer producers are likely to announce minimal decreases of €10—20/t for July. The market will be almost inactive next month. "In August, there may be a slight revival (in buying activity) due to the projected price rise in September. Perhaps, processors will come to buy more material at lower levels" - a market player has said.
