Europe’s PP, PE markets eye floor at 5-year lows amid easing November declines
by Laura Pisano - lpisano@chemorbis.com
European PP and PE markets have opened November on a stable to softer note, with price decreases slowing from the previous months after both PP and PE prices hit their lowest levels since 2020 for most grades. While some grades broke below certain thresholds, a few suppliers tried to halt the downturn by seeking rollovers in their initial offers.
PPH hovers around 5-year lows, breaks below €900 in Italy
Most sellers have approached the market with limited decreases of €20-25/ton this week mainly in line with the monomer contract outcome. Hence, prices continued to hover at their 5-year lows and marked the eighth month of decreases.
Non-European origins formed the low ends of the ranges with PPH prices standing at €880-980/ton and €930-1030/ton for PPBC inj. on FD Italy, 60 days basis this week. In West Europe, price assessments stood at €970-1070/ton for PPH and at €1020-1120/ton for PPBC inj. with the same terms.
LDPE, LLDPE near or below €900 FD level in Italy
Similarly, initial offers for LDPE and LLDPE emerged slightly below October levels, with LDPE prices nearing the €900/ton FD level on the low end. LLDPE, meanwhile, broke below this level with low ends reported at €880/ton FD.
The latest November prices were assessed at €930-1000/ton for LDPE film, €880-980/ton for LLDPE C4 film and at €900-1000/ton for HDPE film and b/m, all on FD Italy, 60 days basis. In West Europe, price ranges stood at €980-1060/ton for LDPE film, €900-1000/ton for LLDPE C4 film and at €900-1020/ton for HDPE film and b/m on FD, 60 days basis.
Some regional producers, meanwhile, announced rollovers in HDPE and MDPE prices amid tighter availability compared to the previous month. In fact, a few producers were able to ease their stock pressure after a couple of months of hefty price cuts while others faced production issues.
5-year lows for most products stir some buying interest
As prices hit very low levels, players mostly expect the bottom level to be nearing soon. Several players foresee a pickup in buying interest during the month as buyers expressed the intention to secure additional cargoes, albeit not in large amounts. Large-scaled converters have bought some import volumes back in October with delivery in late January or February in order to be covered for Q1 2026.
A packager said, “We might secure extra stocks as we think that PE will hit the bottom in November. The market may follow a stable to firmer trend in the following months.” Plus, they do not think prices have further room to drop amidst producers’ profitability issues and the narrow gap between polymers and monomer contract markets.
A PP buyer remarked, “We bought South Korean PP at aggressive levels for delivery in Q1 as we think that the bottom level is near.”
On the flip side, overall demand was not that bright as derivative sectors remained weak amid poor global economics which weighed on consumers, especially in many PP applications.
Aggressive US PE and Korean PP offers find buyers in Europe with delivery in January
Although the gap between the import prices and spot ranges is not that wide, aggressive offers did exist in some cases. Some buyers engaged in import purchases, preferring cargos with delivery as of Q1.
US mLLDPEc6 was offered at €890-920/ton DDP with delivery in late December or January while US LLDPE was offered at €800/ton DDP with delivery in late January. South Korean material was traded at aggressive levels with PPH, PPBC and PPRC prices at €800/ton, €830-850/ton and €930/ton, respectively, on CIF basis with delivery in late January.
Players gauge the bottom
Following the eighth month of decreases, players hunt for signs of market bottom, although sellers are skeptical about testing the market with higher levels amid current demand conditions and the approaching year-end. However, a few regional PE producers have already tried to halt the downturn by seeking rollovers in early November as they claim to have tight availability amidst unplanned shutdowns and seasonal turnarounds.
Accordingly, players mostly think that the PE downtrend has come to an end while December hints at stabilization also considering unchanged fresh import offers from US suppliers.
When it comes to PP, some players do not exclude possible further small reductions next month given still stagnant end-demand and ample supply.
Nevertheless, the majority of the market acknowledges that it will be hard to push prices higher in the months ahead unless demand recovers.
After prices have spent most of this year on a downturn, players are now discussing whether the bottom level might be reached in November amidst producers’ profitability issues on one side and lingering weak market conditions on the other side.
PPH hovers around 5-year lows, breaks below €900 in Italy
Most sellers have approached the market with limited decreases of €20-25/ton this week mainly in line with the monomer contract outcome. Hence, prices continued to hover at their 5-year lows and marked the eighth month of decreases.
Non-European origins formed the low ends of the ranges with PPH prices standing at €880-980/ton and €930-1030/ton for PPBC inj. on FD Italy, 60 days basis this week. In West Europe, price assessments stood at €970-1070/ton for PPH and at €1020-1120/ton for PPBC inj. with the same terms.
LDPE, LLDPE near or below €900 FD level in Italy
Similarly, initial offers for LDPE and LLDPE emerged slightly below October levels, with LDPE prices nearing the €900/ton FD level on the low end. LLDPE, meanwhile, broke below this level with low ends reported at €880/ton FD.
The latest November prices were assessed at €930-1000/ton for LDPE film, €880-980/ton for LLDPE C4 film and at €900-1000/ton for HDPE film and b/m, all on FD Italy, 60 days basis. In West Europe, price ranges stood at €980-1060/ton for LDPE film, €900-1000/ton for LLDPE C4 film and at €900-1020/ton for HDPE film and b/m on FD, 60 days basis.
Some regional producers, meanwhile, announced rollovers in HDPE and MDPE prices amid tighter availability compared to the previous month. In fact, a few producers were able to ease their stock pressure after a couple of months of hefty price cuts while others faced production issues.
According to ChemOrbis Price Index, current prices represent the lowest levels since 2020 for HDPE and LLDPE film while LDPE continues to trade around two-year lows both in West Europe and Italy.
5-year lows for most products stir some buying interest
As prices hit very low levels, players mostly expect the bottom level to be nearing soon. Several players foresee a pickup in buying interest during the month as buyers expressed the intention to secure additional cargoes, albeit not in large amounts. Large-scaled converters have bought some import volumes back in October with delivery in late January or February in order to be covered for Q1 2026.
A packager said, “We might secure extra stocks as we think that PE will hit the bottom in November. The market may follow a stable to firmer trend in the following months.” Plus, they do not think prices have further room to drop amidst producers’ profitability issues and the narrow gap between polymers and monomer contract markets.
A PP buyer remarked, “We bought South Korean PP at aggressive levels for delivery in Q1 as we think that the bottom level is near.”
On the flip side, overall demand was not that bright as derivative sectors remained weak amid poor global economics which weighed on consumers, especially in many PP applications.
Aggressive US PE and Korean PP offers find buyers in Europe with delivery in January
Although the gap between the import prices and spot ranges is not that wide, aggressive offers did exist in some cases. Some buyers engaged in import purchases, preferring cargos with delivery as of Q1.
US mLLDPEc6 was offered at €890-920/ton DDP with delivery in late December or January while US LLDPE was offered at €800/ton DDP with delivery in late January. South Korean material was traded at aggressive levels with PPH, PPBC and PPRC prices at €800/ton, €830-850/ton and €930/ton, respectively, on CIF basis with delivery in late January.
Players gauge the bottom
Following the eighth month of decreases, players hunt for signs of market bottom, although sellers are skeptical about testing the market with higher levels amid current demand conditions and the approaching year-end. However, a few regional PE producers have already tried to halt the downturn by seeking rollovers in early November as they claim to have tight availability amidst unplanned shutdowns and seasonal turnarounds.
Accordingly, players mostly think that the PE downtrend has come to an end while December hints at stabilization also considering unchanged fresh import offers from US suppliers.
When it comes to PP, some players do not exclude possible further small reductions next month given still stagnant end-demand and ample supply.
Nevertheless, the majority of the market acknowledges that it will be hard to push prices higher in the months ahead unless demand recovers.
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