Persistence From Manufacturers Culminates in a Marginal Rise in European Polymer Prices
- 22-Nov-2022 10:45 AM
- Journalist: Francis Stokes
The polymer market in the European region has been stable, with minimal rise throughout this month. Although ethylene costs have decreased, producers of Low and linear Low-Density Polyethylene (LDPE and LLDPE) initially planned price hikes but LDPE and LLDPE prices, on the other hand, only slightly increased due to weak demand and competitively priced imports.
Demand for pharmaceuticals and packaging is holding up reasonably well, but it is dropping in other industries, including furniture and construction. In October, the demand for LDPE, LLDPE, and Polypropylene (PP) in all product categories remained significantly below average. The weakening economic climate and potential recession are a worry for converters.
European manufacturers have reduced production and accelerated facility maintenance schedules due to weak demand. However, there is sufficient material available to satisfy converters' requirements. A regular influx of imported materials has also bolstered supply. Sellers are tempted to ship more of their goods to Europe due to the low freight costs and high prices.
Despite a decreasing propylene settlement, European PP producers initially proposed projected price increases, including an energy premium. This comes after significant declines for five straight months. As hidden requests stayed feeble and energy overcharges could not be thought about completely exchanges, the underlying raise recommendations were downsized.
Even though it has been reported that some players are slowly increasing stock levels in anticipation of a price rise soon, PP demand remains low. In recent months, PP producers have reduced production run rates by 20–30% to improve market balance. However, a consistent influx of material from imports has helped maintain PP's supply in Europe.
According to ChemAnalyst, LDPE, LLDPE, and PP in the European markets will increase at low rates during November due to production cuts and energy premiums. However, the costs are likely to drop during December due to weakening buying sentiments due to the festive season.