Market players had hoped for increased PE demand due to summer activities in Europe, but they did not observe significant impacts. Nonetheless, this month is described as relatively active in PE and PP sales.
Due to cost increases and delays in Asian deliveries, the price of imported material may rise next month. As a result, European producers may attempt to maintain quotes at June levels, even with an anticipated decrease in ethylene and propylene value by €20-30/t.
Generally, the traditionally quieter summer months of July and August are anticipated in terms of market conditions. Therefore, despite lower material volumes available on the market, significant shortages are not expected.
PP
- The PP demand has remained at a sufficiently high levelthis month, according to market players. Some traders note that they have managed to execute several very large deals;
- Following last week's FM declaration at PP's manufacturing facility in Belgium, market players did not report material shortages. They claim that volumes have been secured due to increased capacities at other plants within the company;
- Slovak producer failed to meet the required volumes for its clients this month. As a result, traders with PP homo and PP copo in their assortment managed to sell large quantities of material.
PE
- Market players have noted an increase in demand for blow-moulding HDPE, while other grades have been less favoured; Some European traders claim they are attempting minimal price increases due to reduced material volumes amidst increased demand;
- Players report lower foreign material inflows and increased delivery expectations, although some assert that major traders have hold significant warehouse stocks;
- Due to limited LDPE volumes available to the Polish and European markets, the US producer has increased prices by €30/t compared to May;
- A Hungarian producer has lowered LDPE prices for Ukrainian clients but has kept prices unchanged for Polish clients.
