
Polyolefin market encounters product shortages
Despite the lack of some materials in the market, there is no panic or increased purchasing activity from converters who buy raw materials only as needed.
Despite the lack of some materials in the market, there is no panic or increased purchasing activity from converters who buy raw materials only as needed.
Polish processors are benefiting from the relative stability of the market and are stocking up on raw materials ahead of the expected price increase in March.
High prices and low supply persist in the polyolefin market. Some players stocked up at the beginning of the month, observing a steady rise in prices and material shortages, while others are holding back in the hope of a change in trend.
According to market players, converters are making cautious purchases this month. Most large manufacturers of finished products bought more material in January ahead of the anticipated price increase.
Due to low demand and the ability of some converters to wait out February without making purchases, almost all polyolefin producers have reduced the amount of raw materials available for sale.
In the first week of February, demand and prices for polyolefins are increasing, while stocks of materials are proving insufficient.
Polish market players have reported better demand for both PE and PP from converters. Among other factors, this is why we are seeing another round of polyolefin price increases in Poland.
The polyolefin market has started reviving in H1 January. Market players say that in addition to completing December deliveries, they already have new orders for PP and PE, with the former bought more frequently than the latter.
The European market will operate in a kind of stop and go mode in 2024. This means that larger polymer manufacturers will schedule maintenance at different sites, thus limiting their emissions at the company group level.
Demand has been low in the Polish polyolefin market in the last pre-holiday week, according to Chem-Courier’s data. Converters have been tapping into their raw material stocks or purchasing only small batches.
According to traders, clients have been ordering both large lots of several hundred tonnes and small ones of under 24 t delivered on pallets.
Contract prices for monomers and, ultimately, polyolefins, have predictably moved down in Poland in December.