The European polymer complex remained subdued in August, with most grades under pressure from weak demand, heavy inventories, and the seasonal holiday slowdown. While some contracts rolled over, spot markets reflected more noticeable declines, as buyers avoided fresh commitments and sellers struggled with oversupply.
In HDPE, spot values drifted lower while contract settlements mostly rolled over. Demand lagged significantly during the summer lull, and supply remained plentiful across grades, leaving the market oversaturated. Injection and blow-molding grades were particularly weak, with blow-molding suffering more. Buyers sought reductions to match falling monomer costs, but expected supply disruptions prevented deeper cuts. Sentiment was weak but mixed, with participants looking ahead to September for clearer direction once restocking begins.
LDPE stood out as more stable compared to other grades. Although demand was muted by holidays, fundamentals were firmer, with structural supply tightness lending some support. Contract settlements rolled over despite buyers’ push for reductions, while anticipated upstream supply issues limited downward pressure. Market participants expect some recovery in September as converters return and restocking begins.
LLDPE spot prices fell further, pressured by oversupply and competitive imports from the US and Asia. Contract prices, however, held steady, supported by the same anticipated supply interruptions that propped up LDPE. Buyers noted that spot levels have dropped sharply, with producers cutting offers to stay competitive. Some early restocking for September appeared, but sentiment stayed cautious, with speculation that prices may be nearing a bottom.
Polypropylene (PP) spot prices rose slightly despite sluggish demand, buoyed by expectations of pre-buying before September. However, the overall market was quiet due to summer holidays and an ongoing oversupply problem, especially for homopolymer grades. Imports from the Middle East began arriving in Southern Europe, but logistical challenges clouded Northern Europe’s outlook. Unless demand improves, producers may be forced into production cuts or aggressive export strategies to manage stock.
Polystyrene (PS) prices fell as weak demand dominated. Even with triple-digit discounts, buyer activity was minimal, while imports remained competitive. Operating rates hovered at 50–60%, with producers ready to ramp up if demand recovers. Expandable PS (EPS) saw slight seasonal support from air-conditioning demand, but not enough to offset weakness elsewhere. Sentiment remains cautious heading into autumn.
ABS saw a sharp drop in spot prices, pressured by weaker feedstock costs, rising imports from Asia, and sluggish downstream demand. Seasonal slowdowns deepened the fall, while provisional tariffs on Korean ABS are expected to push more Asian cargoes into Europe. Local producers trimmed offers to stay competitive, but market outlook remains pessimistic.
PVC prices rolled over as buyers purchased only essentials during the holiday lull. Imports from Asia and the US are expected to rise in September as restocking begins, but oversupply and weak demand kept August stable. Producers sought to manage inventories by diverting to exports and trimming offers. September demand recovery is anticipated, though short-term price gains appear unlikely without stronger end-user consumption.
PET prices hit a four-year low as weak demand coincided with the seasonal peak bottling season. European PET suppliers were forced into deeper discounts to stay competitive, with imports also under investigation by the EU following an anti-dumping probe into PTA imports from South Korea and Mexico. While the probe may prevent further steep declines, sentiment for September remains wary, with little sign of fundamental demand recovery.
