Given market players' expectations of a rise in material costs in September and the end of production downtime for most converters, demand is likely to increase next week. However, Chem-Courier predicts that the contract price of monomers will decrease by €20-30/t in September due to decreasing crude oil prices. Consequently, European PE and PP producers may lack grounds to raise rates next month. Even if producers attempt to raise prices, customers may reject the hike, citing the lower monomer value. The only basis for a potential rate increase for PE and PP could be a reduction in the availability of material, both European and imported, as well as the traditional rise in demand in September.
PE
- Most market players report average demand for LDPE;
- There has been limited availability of HDPE blow-moulding and HDPE film this week;
- Some producers have halted spot sales LLDPE due to expected price rises in September;
- The average market price for PE was unchanged from last week;
- One European producer has raised LDPE prices by €65/t this week.
PP
- Market players have reported sluggish demand this week;
- Some traders have been experiencing difficulties selling PP raffia due to low material prices from the Polish manufacturer;
- There has been a shortage of spunbond PP homo in the market;
- Most manufacturers have stocks for the first half of September;
- Prices unchanged from last week.
