The European polymer market showed a divided picture this week, with spot HDPE and LDPE prices easing on sluggish demand and sufficient supply, while LLDPE managed to hold firmer thanks to reduced availability and selective demand support. Contract prices across most polyethylene grades, however, rolled over as market participants awaited clearer direction from September negotiations.
High-density polyethylene (HDPE) spot values slipped as participants described August as quiet, marked by weak demand and holiday-related slowdowns. Although domestic producers curtailed output, the region remained well supplied, supported by steady import arrivals. Contract settlements for August were largely unchanged, despite calls from buyers for reductions following recent monomer price declines. Producers held firm, citing the need to prevent deeper cuts amid already fragile margins.
Low-density polyethylene (LDPE) spot prices fell more sharply, driven by weak downstream offtake in packaging and film and steady import competition. Market participants noted that the downturn was compounded by easing feedstock costs, which provided buyers with additional leverage. Even so, LDPE contract prices rolled over for August, with producers resisting further concessions despite the prevailing bearish sentiment.
In contrast, linear low-density polyethylene (LLDPE) displayed relative resilience. Spot values rose modestly, supported by signs of improving demand from packaging and film applications late in the month. Reduced production levels and limited import arrivals tightened availability, providing upward pressure that set LLDPE apart from the broader market. Contract prices, however, remained flat, reflecting the cautious stance of both buyers and sellers as they awaited the September ethylene contract settlement.
Polypropylene (PP) prices declined across all segments, as abundant supply and weak downstream demand weighed heavily on sentiment. Imports from Asia and the Middle East, particularly Saudi Arabia, added competitive pressure, undermining the position of European producers. Although some participants suggested that restocking ahead of September could bring temporary relief, most agreed that structural weaknesses in packaging, automotive, and consumer goods sectors would cap any recovery.
Polystyrene (PS) prices rolled over, with demand described as stagnant. Buyers showed little urgency to secure volumes ahead of the September styrene contract settlement. Imports faced logistical delays, limiting their competitiveness, while domestic supply was sufficient to meet subdued demand. Market observers expect PS values to follow the styrene contract closely in September, though no significant demand rebound is anticipated.
Acrylonitrile butadiene styrene (ABS) prices also remained steady. Buyers reported minimal restocking after the summer break, while imports from South Korea continued to flow at competitive levels despite the European Commission’s imposition of relatively mild antidumping duties in July. Local producers expressed disappointment with the limited protection, while buyers welcomed the additional flexibility in negotiations.
Polyvinyl chloride (PVC) held steady but sentiment stayed weak. Demand from construction and piping applications remained subdued, while oversupply kept buyers cautious. Most participants adopted a wait-and-see approach ahead of the September ethylene monthly contract price, with expectations that any recovery would be marginal at best.
Polyethylene terephthalate (PET) was another weak spot. Spot prices edged down, weighed by poor demand and excessive inventory levels, with August marking some of the lowest virgin PET values since early 2021. Contract prices, however, were stable across key European markets. Participants agreed that hopes for a demand rebound remain limited as the seasonal peak has passed, leaving fundamentals under pressure moving into September.
Overall, Europe’s polymer markets reflected a patchwork of stability and weakness, with LLDPE standing out as the only grade to show price resilience. Market sentiment heading into September remains cautious, with participants awaiting the ethylene contract settlement and signs of demand recovery after the summer lull.
