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The following factors  influenced “commodity” polymer prices and price expectations last week:

• BRENT oil price 59.91 USD / barrel, stagnant prices
• EUR/USD: 1.159, further strengthening of the Euro
• NAPHTHA (European): 485.00 USD/t, stagnating prices,
• October contract monomer prices:
• Until the end of October in force majeure at the PP4 plant of MOL Petrochemical Ltd.

Demand compared to previous years was weaker than usual in October. This is now the focus of the market, especially for polymer producers and traders. The reasons are complex. One of them is the "K" Plastic Trade Fair and Trade Fair in Düsseldorf. It is customary for purchases to “stop” for 2 weeks every three years in the middle of October. A significant number of converters travel to Düsseldorf to look for new, favorable purchasing opportunities. Most of them were successful. There has never been such a wide selection of feedstock. And it's never been so good to bargain on prices. Another reason for the weak demand is that a significant number of converters think that no price increase is expected this year. Therefore, it is not too much of a risk to reduce the stock levels so far held high. So they buy less than usual and try to process their inventory. Demand for finished plastic products is also weaker than usual. The reason for this is that due to the EU Circular Economy regulations expected by 2020, packaging users will also seek to minimize their year-end inventory. Polymer producers are also trying to minimize their end-of-year inventories. It is not yet clear what the year 2020 will bring to plastic converters. So the best strategy seems to be to avoid the usual sales and inventory pressures at the end of the year. The question is right: if both feedstock producers and converters start the New Year with low stocks, will any unexpected event: a major malfunction or hurricane in the Gulf of Mexico not trigger panic in procurement? In the Central European plastics industry, growth is expected to slow rather than a general decline in demand.

The strengthening of the euro is slowly bringing cargos to Europe as well. And the wide supply keeps prices low. In the case of polystyrene producers, it is true that they are trying to reduce their inventories by the end of the year. They try to sell everything they produce. And the pressure to sell is high.

Polyolefin grades

LDPE prices were in a range of  930-1,020 €/t last week.  Demand is low. Prices have not changed. Cheapest prices in the southern region: 940-1,000 €/t.  In the central region and Poland, typical prices are between € 950 and € 1,020 / t, with a minimal decrease of € 5-10. Supply is broad, especially from the simpler film grades. Market players do not expect price increases.

Typical HDPE prices were in a range of 940 - 1,110 €/t in Central Europe last week. Central European producers typically sold their production. Supply by traders and distributors is broad. However, now few want to buy for the reasons mentioned above.

Typical HDPE BM list prices in Central Europe were in a range of 940-1,080 €/t last week. The cheapest prices in the southern region are from the Serbian HDPE producer. In Poland and the Central Region, traders and distributors offer their materials for less than €1,000. Polymer producers tend to be priced above  1,000 EUR. Most transactions were made in a price range of 980-1,060 €/t. Market players do not expect price increases in November.

Typical HDPE IM prices were in a range of 970 - 1,070 €/t in Central Europe. They did not change compared to last week. Demand in spot markets is weak.

HDPE Film grade prices were in a range of 940-1,110 €/t in Central-Europe last week. They did not change compared to last week. Demand in spot markets is weak.

Typical HDPE (100) prices were in a range of 1,220-1,300 €/t last week. Prices have not changed. The construction season is coming to an end. Thus, no price increase is expected next month.

The typical LLDPE C4 prices were in a range of 960-1,040 €/t last week, depending on the grade and application area. They have clearly risen, even in Romania. Due to the narrowing supply.

 mLLDPE (C6) prices were in a range of 1,050-1,220 €/t last week. There was no change compared to last week.  Most transactions happened in the range of 1,085-1,165 €/t.  Price increase is unlikely in November.

Typical PPH Raffia prices were in a range of  970-1,080 €/t. There was a slight increase of 10-15 €. And as cheaper items run out, a small price increase is still possible in the last two weeks of October. However, the November price increase is also unlikely.

The prices of non-specialty PPH IM grades have risen slightly between 990 and 1,110 €/t, while those of high melt index grades have risen slightly in a range of 1,065 - 1,180 €/t. Further price increases are unlikely for the rest of October or even in November.

Typical prices PPC prices ranged from 1,100 to 1,240 €/t in Central Europe. The supply is generally good. Some common copolymers are missing due to MOL force majeure. We do not expect price increases.

PPR prices were in the range of 1,150-1,280 €/t. Supply is usually wide. However, demand is weak, especially for tube types. No price increase is expected next month.

The typical prices of the last week are presented in the table below (full truck load 20-22.5 t):

Polystyrene grades

Typical EPS prices were in a range of 1,150-1,200 €/t last week. The insulation season is at its peak. Most of the polymer producers sold their production. If demand persists in November, a relative rise in prices relative to the SM could be possible.

Typical GPPS prices were in a range of 1,100-1,220 €/t, while HIPS prices were in a range of 1,195-1,310 €/t. The expansion of the GPPS price band is driven by the influx of imports, mainly from Iran. Which is available in the southern region.

ABS prices are still in a price range of 1,430-1,590 €. Demand is weak due to declining automotive use. This results in traders and even producers trying to dispose of their stocks. As a result, the lower price range of the market is opaque.