Bearish sentiment dominates June PP, PE outlook in Europe

Europe’s polyolefins markets are moving deeper into a correction phase after the unprecedented rally that gripped the region between late February and early May. Both PE and PP markets in Europe have come under mounting pressure in recent weeks as demand continues to weaken, buyers stay on the sidelines, and competitive imports increasingly weigh on local sentiment.

Although the downturn remains moderate compared with the scale of the earlier surge, market participants now broadly agree that softer conditions are likely to persist into June.

PE downtrend accelerates amid muted demand

The PE market has seen the sharpest reversal so far, with triple-digit weekly decreases becoming more widespread and prices retreating further from their record highs. The correction has been particularly pronounced for LDPE, which had previously posted the strongest gains during the rally.

In Italy, LDPE prices were reported to have fallen by up to €300/ton from mid-April levels, breaking below €2000/ton FD this week, while HDPE and LLDPE grades increasingly slipped below the €1700/ton FD threshold.

Despite sellers’ efforts to stimulate demand through additional discounts, buying activity remained subdued as converters preferred to delay purchases in anticipation of further decreases. High inventories accumulated during March and April continued to reduce urgency among buyers, many of whom remain sufficiently covered for the near term.

PP market extends losses as buyers avoid fresh purchases

Meanwhile, the PP market has also moved further into a correction phase, with triple-digit decreases emerging more frequently during the second half of May. Market activity remained notably slow as converters largely refrained from fresh purchases due to weak end-product demand and sufficient inventories secured earlier during the rally.

Although some regional producers initially attempted to maintain rollover ideas, growing competitive pressure gradually forced more suppliers to revise their offers downward. Market participants reported particularly aggressive pricing for non-European material, with PPBC offers heard as low as €1650/ton FD, significantly below prevailing domestic levels above €2000/ton FD. Sellers increasingly acknowledged that sluggish demand, rather than pricing alone, remained the primary obstacle preventing meaningful sales activity.
Competitive imports weigh on sentiment across polyolefins markets

Competitive imports continued to exert strong pressure on both PE and PP markets, with traders holding previously secured non-European cargoes remaining among the most flexible sellers. The growing availability of aggressive imports has increasingly undermined local sentiment and strengthened buyers’ expectations for further decreases in June.

In PE, Canadian LLDPE was reported at €1470/ton DDP, while US mLLDPE C6 surfaced at €1600/ton DDP for June-July delivery. Meanwhile, the PP market saw increasing competition from Asian origins, with buyers reportedly securing Vietnamese PPH at €1640/ton DDP for June delivery and Indian PPH at similar levels for early August arrival. South Korean PPBC was traded at €1600/ton CIF for delivery in early September. Chinese material also emerged more frequently at highly competitive levels, with PPH reported at €1420/ton DDP and PPBC at €1350/ton CIF.

The return of competitive imports has further reinforced buyers’ cautious stance, particularly as many converters continue to struggle with weak derivative demand and difficulties passing previous resin increases on to their own customers. As a result, purchasing activity remains largely limited to immediate needs, while many buyers continue to postpone fresh transactions in anticipation of softer market conditions.

Outlook: Softer trend likely to persist in June

Looking ahead, both PE and PP markets are expected to remain under pressure amid stagnant demand, sufficient availability, and persistent import competition. Most market participants do not anticipate any meaningful improvement in buying interest in the near term, particularly as many converters remain well stocked following purchases made during March and April.

Softer feedstock expectations, especially for ethylene, are also contributing to the bearish outlook, although mixed expectations regarding the next propylene settlement could partially limit the size of PP declines. Still, the current downturn is increasingly being viewed as a normalization phase rather than a market collapse. While prices are likely to continue easing into June and potentially July, values remain significantly above pre-rally norms despite the recent corrections.