Polyolefin demand remains limited in Europe ahead of Easter holidays
PE prices are still reportedly under the pressure of ample supplies and some traders’ aggressive approach, which previously paved the way for bearish expectations for April. However, these expectations have evolved following the recent rebound of the energy complex and the higher monomer settlement.
Some sellers hope to see better demand in April, believing that buyers who have been running down their stocks will return to the market to replenish. This, in conjunction with the higher ethylene settlement, might encourage PE suppliers to seek rollovers or slight increases for April.
Nevertheless, some players expect no visible changes in demand, noting that April will be a short month in terms of trading activities due to some festivities. If demand remains low next month, it might counterbalance possible hike attempts from PE suppliers.
A regional distributor commented, “Demand was relatively better in the first half of March while it has slowed down recently as buyers take a wait and see stance. We believe that producers will try to apply small increases on their April offers following the higher ethylene settlement, yet demand will be the main factor setting the tone of the market.”
Prior to the rebound of upstream costs, players’ PP expectations for April mostly centered on a stable to softer trend due to the shorter working days. In line with the recent shift in the upstream sentiment, players already voiced their expectations to see slight increases in the next propylene contracts earlier this week. “In that case, PP sellers might also approach the market with some increases. Ongoing maintenance shutdowns as well as the fact that PP performs better than PE may also give them an upper hand in seeking hikes for April,” many players argue.
“We expect small increases of €20/ton in April PP offers on the back of rising energy costs along with spot propylene prices,” noted a packaging manufacturer from Germany.
A distributor also opined prior to the April propylene settlement, “The PP market appears to be in balance and it has been supported by several production outages across the region during the month. As for April, small increases might be obtained especially if propylene settles higher. Still, shorter working days might lead to slower activity and keep the upward trend in check.”
A converter in Germany said, “We faced some difficulties in finding extra material for specialty grades while regular grades were accessible. We expect stable prices in April as demand did not substantially change despite Easter holidays.”
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Initial June PE offers to SEA signal firming despite buyers’ resistance
- Firming in ethylene lags behind propylene in Europe
- PET rally stalls in China after prices hit four-and-half-year high
- Asian PS retains firming path on supportive upstream
- June PE outlook under discussion in Europe
- Taiwanese major lowers June PVC offers to Asia despite firm China
- Local PP markets cautiously firmer in Vietnam, Indonesia
- Global ethylene prices continue to defy energy rally
- China’s import polyolefin markets up on soaring crude, futures
- Step-back from initial rollover attempts for ABS in Europe