A monthly review of European polymer prices, provided by Plastics Information Europe, part of the KI.PIE Group.
Standard thermoplastics
- PE off to strong start – producers eye further hikes
- PP stabilises amid plant issues
- PVC prices bottom out
- Styrenics, PET face upward momentum
Standard recyclate
- Sluggish economy continues to dampen demand
- Mostly rollover
- Only a very slight recovery expected for February
POLYETHYLENE
The development of the ethylene contract price in January (down €25($30) per tonne) played only a secondary role in many negotiations. Producers wanted to restore their margins and were supported in this by surprisingly lively ordering activity.
For many types, agreements were reached between a rollover and an increase of up to €70($83)/t. Price reductions were reported only for HD grades.
As a result of cutbacks at a number of production plants, the market was fairly well balanced. Delayed deliveries occurred only due to logistics problems.
On the demand side, too, a surprisingly large number of incoming orders from customer industries in the second half of the month meant that many converters got off to a satisfactory start to the year. In addition, this was reinforced by stock rebuilding and catch-up effects from the previous year.
For February, producers are planning with an optimistic ‘up, up, and up!’ Their plans are supported by an ethylene contract that rose by €15($18)/t to €1,095($1,297)/t as well as by the balanced market situation. Even initial supply bottlenecks no longer seem impossible.
At the very least, some producers were urging converters to place their orders early in the month. However, whether their advice is accepted remains to be seen. Some converters made favourably priced purchases at the end of last year and, in view of the current high prices, intend for the time being to work from their stocks. Caution prevails, particularly as they remain uncertain about the order situation and fear that order activity could cool again before long.
POLYPROPYLENE
The propylene contract price fell by €30($36)/t at the start of the year. As order intake picked up slightly in many areas, producers were able to retain part of the cost reductions on some contracts. In individual cases, a rollover was also set.
Despite planned and unplanned plant curtailments, supply in the market remained unaffected. The oversupply was clearly noticeable, which caused some producers to resort to special deals in order to sell any material at all.
In the first half of the month, the market was still largely inactive. From the third week onwards, there was a clear upturn in momentum, and many order books began to fill up. Processors suspected that this was due to stock replenishment and catch-up effects resulting from postponed orders from the previous year.
What will happen in February? The propylene contract was settled €15/t higher at €965($1,143)/t. As several production plants in Europe are plagued by problems, producers are likely to be in a position to pass on the higher costs. Several lines went offline at the end of January.
With only limited imports arriving, the market is expected to become significantly more balanced. The number of production days is increasing slightly, pushing up demand.
PVC
The PVC market got off to a quiet start this year. In the first half of January, negotiations were slow to get going, and many early transactions were concluded at a rollover. Market activity picked up somewhat as the month progressed. At the same time, price levels fell.
Towards the end of the month, most agreements made allowance for the pro-rata decline in the ethylene contract (down €25/t). Little changed in terms of the supply situation. The market remained oversupplied, and capacity utilisation rates at European production plants stayed at a low level.
A slight upturn was registered on the demand side in the second half of the month. In the PIE survey discussions, panellists made positive mention of the fact that the trend towards customers reducing their inventories seems to have come to an end.
Further ahead, a rising ethylene contract (up €15/t) looks set to dominate discussions in February. Prices would seem to have bottomed out. Producers are expected to put forward demands for higher PVC prices in February.
Offers from overseas have recently become less price-competitive again, and demand looks set to increase slightly, if only as a result of a higher number of production days.
STYRENICS
The start to the new year 2026 was similar to the end of the old one: chilled. Demand remained subdued, especially as many players only resumed production in the second week of January. In terms of price, things were also rather calm after the styrene reference increased by a modest €21($25)/t.
The slight cost increase generally carried over in full to polystyrene (PS), while expanded PS (EPS) only underwent a proportionate cost transfer, or none at all. Acrylonitrile butadiene styrene (ABS) also remained in rollover, as the reductions in the other cost components butadiene and acrylonitrile largely offset the price driver styrene.
Signs point to more momentum emerging for February. While demand for styrenics is expected to remain rather subdued, prices are set to change more, as the styrene reference for February shot up by €120($142)/t.
For PS and EPS, this might mean triple-digit mark-ups. For ABS, however, premiums will likely be more moderate, as the respective cost increases for butadiene and acrylonitrile were significantly lower than those for styrene.
PET
A certain amount of movement occurred on the European PET market in the first month of the new year. Asian PET prices went up. At the same time, disputes at the European ports led to delays in the delivery of imports.
Given the consolidation of production in Europe and the resulting uncertainty regarding delivery, large customers in particular feared a more rapid rise in prices over the coming months. They therefore built up excess stocks as a precaution. This brought demand up to the normal level for the time of year, even though the end-markets still failed to generate any strong momentum.
Against this backdrop, suppliers managed to push through what were no more than moderate increases, depending on the starting level. The supply situation still appears to be precarious. If an event were to disrupt European production, many buyers fear this could lead to bottlenecks, followed by price increases.
Quite a few are considering making further inventory purchases. Additional increases are therefore on the cards for February, if only for this reason.
STANDARD RECYCLATE
Last year, it was the newly adopted or already effective recyclate quotas that fuelled a significant price increase. By the beginning of 2026, this effect had fizzled out. The sluggish economy weighed heavily on the recycling industry. As a result, there were mostly rollovers in January, if not downward price adjustments.
What’s more, the small price gap to primary material virtually guarantees that processors primarily choose virgin plastics. This led to minor price concessions in some negotiations.
Recyclate lines started up again after their maintenance shutdowns, although their capacity utilisation remained below normal. Despite some extended shutdowns around Christmas and the New Year, pelletisers continued to sit on high stocks and were able to respond quickly to orders.
In the coming month, recyclers will probably be able to implement at least selective price increases. For standard grades, some negotiations are also likely to result in a rollover. However, the market is yet to really revive or even ramp up.
The output of the throttled lines will be sufficient. Recyclers will still have to wait before being able to reduce their stocks. Volume calls are still more likely to be placed for favourably priced virgin material. Demand for recycled materials hardly seems to improve. It is therefore unlikely that demand will reach normal levels.
For more than 35 years, PIE has been an invaluable source of information for European plastics industry decision makers – a quick, yet in-depth look at the development of plastics markets and polymer prices. Available online 24/7 and as a printed newsletter twice a month. To read the entire report, go to www.ki.de and sign up for a 48-hour free trial!
