Sluggish demand continues to negatively affect market conditions. Traders and manufacturers will continue to make special offers on their material; however, converters are likely to wait until the next month to make purchases. Low demand in Europe is likely to prompt further price declines next month. An additional €30 - 50/t decrease is expected.
Other market trends, PP:
- Market players note modest activity. The situation with PP raffia demand is still the worst.
- Supply has been adequate; while there seems to be a surplus of PP raffia due to a new player entry into the market.
- Converters procured material at the beginning of the month following their requirements and do not plan to make purchases in H2 April
- Average market prices for materials have remained unchanged; however, some traders and manufacturers are offering their commodities at a €20/t discount compared to last week.
- In May, it is expected that the contract propylene price will either remain at April levels or decrease by €10/t. However, manufacturers from Asian countries are already complaining about the monomer availability, and the conflict escalation in that part of the world could further worsen the situation with oil supply.
Other market trends, PE:
- Market players continue to observe low demand for HDPE, particularly for injection- and blow-moulding HDPE.
- Modest demand was attributed to the raw materials presence and finished products in converters' warehouses in H1 April.
- There is no material shortage in the market.
- Some traders continue to lower prices, while others maintain them at last week's levels.
- Converters anticipate another price decrease in May.
- There is information that material delivery from Asia and China will become more expensive next month.
- Repairs are underway at Formosa Plastics' LDPE, LLDPE production facility in the USA
- European manufacturers expect ethylene quotes to remain at April levels next month or minimally decrease.
- Another negative factor affecting the market will be further significant increase in electricity prices, expected in June.
