Polish converters continue to buy polyolefins on an ad hoc basis, and if possible, hold off new purchases in anticipation of further price cuts. Packaging remains one of the most active consuming industries. Although some European facilities are shut and others are under repair or reduced capacity utilisation, there is no shortage of materials. The availability of imports is also on a par with demand.
A fall in prices has been steep this month, with a gap of over €100/t between them reported. According to the market data, injection-moulding HDPE has got some €125/t cheaper to €1,060 - 1,100/t DDP Poland in November. Film LDPE has lost €105/t on average month on month. PP raffia prices have decreased by €115/t since last month.
The market values of materials reportedly stayed unchanged las week, but traders have begun offering discounts. ‘Traders have started to panic and reduce prices; some are trying to sell materials at lower prices than they paid for them. Discounts average up to €30 - 40,’ a market player has informed. Some traders are in a different mood though, ‘We have the goods in stock that we bought during an autumn price rise. We will withhold then until things look up,’ one of them said. ‘Of course, we can offer a discount, but demand is still minimal,’ they added.
Large converters may choose to buy larger batches than usual in view of the predicted price cuts. Small and medium-sized ones are likely to buy feedstock only when necessary, the more so that the forthcoming holidays and the scheduled plant outages will bring their needs for materials below normal in December. ‘Smaller producers of finished plastic goods may want to restock with larger polymer quantities at lower prices but cannot afford it,’ a Polish trader has explained.
Contract prices for monomers are forecast to fall by €30/t in December. Thus, polyolefins are expected to depreciate as well. PE and PP prices may lose €40 - 50/t and €30 - 40/t respectively.
