LDPE pioneers Dec hikes on tightness in Italy; NWE mostly stable

In Italy, the PE market has shifted direction for the first time in eight months, moving to a stable to firmer trend in December as suppliers managed to pass rollovers to moderate hikes on deals. However, a different picture emerged in Northwest Europe, where PE prices remained mostly stable, although several producers continued to push for hikes on LDPE to recover margins.

PE markets turn firmer in Italy after 8-month slide, LDPE leads gains

The strongest upward pressure emerged in the LDPE market, as tight supply stemming from force majeures and production disruptions pushed prices up by €50-70/ton. HDPE, LLDPE, and MDPE, meanwhile, saw rollovers to €20-30/ton increases. Both regional suppliers and traders selling US material applied limited gains on their December prices to recoup some margins.

The majority of converters, however, remained sidelined this month, choosing to secure only limited volumes as they are well covered with material purchased in October and November. Some buyers reported stop orders for LDPE from regular suppliers due to tightening availability, with prices below €1000/ton FD disappearing from the market.

A distributor selling both US and European origins commented, “We raised our prices due to our suppliers’ firmer stance. Buying interest exists for January, but demand is far from strong as converters remain cautious amid an uncertain outlook.” A trader selling different origins issued rollovers for December HDPE and LLDPE, while applying small hikes on January-delivery cargoes.

Stability prevails in Northwest Europe

In Northwest Europe, meanwhile, December PE deals were mostly closed with rollovers, despite some hike attempts on LDPE prices. Tightness caused by production issues and force majeures supported these attempts, but weak demand and buyers’ resistance kept pricing largely unchanged from November, especially for HDPE and LLDPE.

Some distributors opted to sell from stock at steady levels, despite their supplier’s hike intention. A distributor in Germany said, “Our producer is seeking €30/ton increases, but we are keeping our December offers unchanged due to weak buying interest.” In addition, some sellers are willing to concede to small discounts in order to reduce their inventories.

Converters across the region limited their purchases to basic needs, with many skipping fresh orders entirely. Traders offering locally-held US cargoes applied rollovers to small gains, but they noted more inquiries for January rather than December.

Players’ focus turns to early 2026

Europe’s PE markets are ending the year with firmer LDPE, stable HDPE and LLDPE, and a market mood shaped by selective tightening on one side and weak demand on the other. Accordingly, market participants look to January with cautious expectations.

Although regional producers are likely to open the new year with hike attempts, players believe the first half of January might be stable, as converters will hold high stocks also considering the arrival of import cargoes; hence, demand is likely to remain muted. However, an upward trend might consolidate towards late January, when buyers return to the market to restock their inventories.