The Polish polyolefin market was mainly inactive in H1 June. “We expected an increase in demand for PE and PP after the public holidays on 8-11 June following the feast of Corpus Christi celebrated on 8 June this year, but producers of finished products have not been more active in buying raw materials and stockpiling the polymers," said a trader. Most converters continue buying them only to meet their current needs. In addition, some traders have reported an increase in small orders for 24 t and less. "Converters are probably waiting for further product depreciation," another player added.
Traders said that PP was bought more often than PE. Horticulture, farming and packaging stay the most active consuming industries. "Demand for PP for pipe applications is more or less high, but overall consumption remains below the typical seasonal level," a Polish trader commented.
Prices for some polyolefins have fallen slightly compared with last week. Film HDPE and LDPE prices have gone €20/t down. They are currently traded at €1,020-1,090/t and €960-1,040/t DDP Poland respectively. Prices for PP homopolymers have remained unchanged from last week. However, PP block and random copolymers have depreciated by €40/t to €1,100-1,210/t and by €60/t €1,160-1,250/t DDP Poland respectively.
The June decline in polyolefin prices could be, and most likely will be, the reason for European producers to limit capacity utilisation. This move may help preventing a further decrease in polyolefins prices. Prices for monomers are likely to lose at least €40/t in July. Market players expect low conversion activity due to the ongoing holiday season. "We hope that the market wakes up in September," commented a source.
