The European polymers market presented a mixed picture this week, with different product segments charting diverging courses as players returned cautiously after the summer lull. While some polyethylene grades experienced price gains, others came under pressure from weak demand and competitive imports, with overall trading activity remaining restrained across most markets.
In the high-density polyethylene (HDPE) segment, blow molding and injection spot prices edged lower. Market players approached cautiously after the summer holidays, and even expectations of stronger converter demand in September did not materialize. Fundamentals remained largely unchanged, defined by weak buying interest and an abundance of material supply. The availability of affordably priced imports further weighed on prices, leaving spot activity muted despite October delivery offers surfacing at slightly reduced levels. Contract values, however, stayed steady, reflecting an absence of real upward momentum.
Low-density polyethylene (LDPE) told a slightly different story, with spot prices climbing while contracts largely rolled over. Tight supply, restricted inventories among certain suppliers, and steady demand for film-grade LDPE helped lend support. Buyers seeking to replenish stocks had little room to negotiate, as producers sought to safeguard margins despite pressure from lower monomer costs and subdued downstream markets. Even so, contract prices remained stable, with some signs of upward bias tempered by persistent competitive offers from other polyethylene grades.
Linear low-density polyethylene (LLDPE) spot prices also moved higher, underpinned by supply limitations and firmer ethylene costs. Activity in the packaging and film sector added to demand, particularly as August came to a close. Market sentiment improved slightly compared to earlier months, though the longer-term outlook remained cautious, given weak fundamentals and persistent import competition. Contract prices, however, continued to hold steady, creating a gap between resilient spot activity and the broader subdued environment.
The polypropylene (PP) market remained largely unchanged, with contract and spot levels holding steady. Anticipated restocking at the end of August did not materialize, and competitive import offers continued to limit upside potential. With demand from downstream industries still soft, market participants described conditions as steady but uninspiring, with no real signs of recovery.
Polystyrene (PS) extended its downward streak, marking the sixth consecutive month of declines. Price reductions mirrored a sharp drop in styrene feedstock settlements, though buyers still pressed for deeper cuts. Demand from end-use applications stayed weak, leaving suppliers with little leverage. A brief uptick in spot buying was observed as converters took advantage of lower prices, but overall sentiment remained bearish. Expandable polystyrene (EPS) followed suit, weighed down by ample supply, weak consumption, and competitive local availability.
In the acrylonitrile butadiene styrene (ABS) sector, prices slumped further as demand stayed muted. Ample supply, weak order books, and declining styrene costs reinforced the bearish outlook. The European Commission’s decision to impose temporary antidumping duties on South Korean imports provided little relief, with many participants doubting its effectiveness in curbing competitive inflows.
Polyvinyl chloride (PVC) markets rolled over, as September contract negotiations progressed slowly amid weak spot demand. Even with ethylene feedstock prices softening, producers largely maintained stability, aided by supply adjustments such as run-rate cuts at Inovyn’s Spanish facility. While restocking activity was minimal, some market sources pointed to cautious optimism, noting slightly better demand than in August.
Polyethylene terephthalate (PET) spot prices fell, while contracts held steady. Ample stock levels across the region and subdued post-holiday demand kept sellers on the back foot. Competitive imports continued to weigh heavily, though trade flows were beginning to adjust in response to the European Union’s antidumping probe into Vietnamese PET shipments.
Overall, European polymer markets remained cautious, shaped by subdued demand, competitive imports, and supply-side adjustments. With the summer break behind them, market participants now look to September negotiations and feedstock developments to set the tone for the coming weeks.
