A monthly review of European polymer prices, provided by Plastics Information Europe, part of the KI.PIE Group
Standard thermoplastics
- Little to no market movement
- Prices remain unchanged, demand shows no signs of recovery
- Only slight upturn in order activity expected for October
Standard recyclate
- Prices remain under pressure
- Demand weakness perpetuates
- Recyclers aim to keep prices stable in October
POLYETHYLENE
In the course of the latest negotiations, producers were unable to factor in the small increase of €5($5.8) per tonne in the cost of the ethylene. With most PE grades, the surplus in supply that was triggered above all by substantial imports from Asia and the US, led to falling prices. The packaging segment, however, provided a glimmer of hope, and in some cases has been generating solid ordering activity thanks to food and pharmaceuticals.
There are signs of greater price stability for October. On the one hand, the feedstock rolled over and was fixed at its previous month’s level. On the other, there was some optimism in the PIE panel discussions that demand could pick up again, albeit with a delay. Because of the C2 rollover, experts expect October’s negotiations to focus less on a single month and more on the whole of 2026.
Negotiated volumes and sales in the final quarter are likely to stay modest, so some producers may try to shift the discussion to next year in hopes of securing the sales they are aiming for. At the K plastics trade fair in Düsseldorf, held in early October, the mood was expected to be rather subdued. In fact, most players do not anticipate a significant and sustained recovery in demand before the second half of next year.
POLYPROPYLENE
By the middle of September, nothing remained of producers’ initial intention to raise prices. As demand showed little sign of picking up, the previous month’s special deals were increasingly carried over into the negotiations for September. Producers prioritised volume over price. As a result, despite the rollover for the precursor propylene, there were often downward adjustments into the mid-double-digit range.
The market remained oversupplied. This was mainly due to the continued flow of imports, and even the production problems of one producer – which declared force majeure during the month – did not change anything. According to figures from Eurostat, imports into the EU27 already amount to around 990,000t for the current year. Few processors felt any urgency to purchase materials.
Even after the summer holidays, the order situation remained less than stellar. In most cases, only the bare essentials were purchased – and that really wasn’t much. The automotive industry failed to make a comeback after the summer break. At least there were a few sparse impulses from the project business of the electrics/electronics segment.
The C3 contract for October was fixed at the previous month’s level. As the market fundamentals are unlikely to change much, prices are expected to remain stable or decline slightly. There is still a hint of optimism among processors, however. A small number of panellists expect demand to increase again in October. This means that the level could ‘improve’ from catastrophic to only poor.
PVC
Prices for PVC remained more or less stable in September. While a number of European producers initially asked for increases of up to €50($58)/t, based on the slight rise in the ethylene contract, these ambitions came to nothing due to weak demand.
Import volumes from abroad ensured that supply was more than sufficient, despite pronounced cutbacks at European plants, while the construction industry and automotive sector were once again unable to stimulate demand. Most transactions therefore remained at rollover level. In some cases, prices were even adjusted slightly downwards.
The mood was likely to be subdued in October at the K trade fair. No one is expecting any momentum that could prompt hopes of a pickup in demand again. Many PVC producers have significantly scaled back their involvement in this event on account of their economically difficult situation.
Nevertheless, initial talks for 2026 would still have been conducted in Düsseldorf. Certain producers that missed out on volume allocations to some extent this year will most likely strive to play a more prominent role in contract negotiations. Against this background, prices will trend sideways, at best up to the end of the year –reflecting the ethylene contract – while price reductions are also likely for a number of agreements.
STYRENICS
Prices keep sliding further down. Styrenics prices declined for the sixth month in a row in September. As in previous months, declining feedstock costs and weak demand set the course for further discounts.
At the beginning of the month, producers were still trying to retain some of the decreased costs in order to restore margins a little – albeit in vain. Soon, the price reductions for polystyrene (PS) and expanded PS were generally adjusted to the extent of the styrene reduction (down € 46/t).
With slightly more variance in the agreements, acrylonitrile butadiene styrene prices also largely followed the cost trend. For all styrenics, however, there were also purchase packages with non-generalisable special conditions from suppliers who wanted to increase sales volumes.
Overall, demand remained very sluggish. The post-holiday pickup in demand was significantly lower than hoped and expected – positive stimuli are still nowhere to be seen. The complicated situation is not likely to change in October, either. Order activity remains slack and the styrene reference for October declined again (down €51($59)/t).
In the wake of this, prices for styrenics will likely continue to trend downwards for a seventh consecutive month.
PET
The European PET market limped through September. Struggling European producers were driven to the ropes in light of weak demand. Considerable concessions extending into the triple-digit range were necessary in order to sell anything at all. While imports were available, they failed to have a stimulating effect.
Market conditions are unlikely to change any time soon. The paraxylene reference price for September was only settled late, with the feedstock quoted at €65($76)/t – a further reduction of €20($23)/t. As a result, downward price pressure persists. Widespread triple-digit quotations would come as no surprise.
STANDARD RECYCLATE
The downward trend of the past few months is continuing. In September, the majority of recyclate prices were still heading in the same direction – further downwards. Prices only remained stable for rLDPE injection moulding grades and rHDPE pipe grades, but those were already at the bottom of the price range. All other prices declined.
Weak demand was identified as the main reason, as the interest in materials did not pick up as strongly as hoped after the holiday period, if at all. There was a lack of positive stimuli and for several materials, there was also competition from cheap off-spec virgin material. As a result, the market for many recyclates trended towards oversupply, even though production remained severely curtailed.
Even the ‘success’ of rHDPE pipe grades – namely, maintaining the previous month’s price levels – is only an ostensible one. On closer inspection, the recyclers actually wanted to increase this segment’s prices to at least begin to factor in their increased costs. Ultimately, however, the valiant quest was abandoned, as processors blocked any demands for premiums.
The situation is unlikely to improve in October, as market parameters are unlikely to change much. On the plus side, demand for construction-related products is expected to increase slightly due to seasonal factors. However, this does not change the fact that demand remains weak overall, and the supply of recyclates tends to be abundant. What’s more, recyclers continue to face strong competition from favourable offers for primary material. Considering this, they aim to at least maintain the current price level for most materials. Whether they will succeed is another matter entirely.
