The Polish PE and PP markets are steady. The farming, packaging and horticulture industries are moderately active and the construction one is as quiet as before. Polypropylene is changing hands more often than polyethylene. There the market is far from tight, but a shortage of specialty grades, as usual, may arise at the end of the month.
Converters are slow to restock with the materials even at such attractive prices, continuing to buy only ad hoc. The traders that deal in small polyolefins batches of up to 24 t have informed that June has been a good month. ‘Converters that have always bought in big lots are now switching to small orders and go to us,’ said one of them. This situation stems from the constant depreciation of the polymers and the availability of discounts and special offers from traders and producers. Therefore, converters are seizing the chance to buy them more cheaply.
At the same time, some large Polish traders are selling the goods with a minimal to no margin just to divest themselves of the remainder in stock.
The average market prices for polyethylene and polypropylene have remained unchanged compared with last week. It is known, however, that many companies are offering their goods at a discount. Some are selling the material with a margin of only PLN 30/t. Also, some traders that quoted prices close to the higher end of the range in the middle of this month lowered them. PP random quotes fell by €10/t to €1,150-1,240/t.
Market players are predicting a further decline in polyolefins prices. ‘It is said that the contract price of monomers will fall next month, plus the holiday season and minimum demand will affect the [polymer] price next month. In my opinion, the price will go down by €20-40/t. However, it will definitely be the 'bottom', there is nowhere to depreciate further,’ said a market player. Capacity utilisation cuts planned by several European producers may stabilize the market situation somewhat though. Also, a US polyolefin manufacturer is going to reduce its deliveries to the European market and shifting its focus to China, according to the unconfirmed information.
