Destocking, imports, and summer lull drive polymer prices lower across PE, PP, PVC, styrenics, and PET / Minimal buying despite fall in prices / Demand for PET below seasonal expectation

PE: After four months of rising costs in succession, the ethylene contract for June was fixed EUR 50/t lower. In combination with the poor demand ahead of the summer holidays, this resulted in major downward price adjustments – which considerably exceeded the minus of the monomer. A healthy supply situation across the board put additional pressure on prices. Despite plant cutbacks, there was more than enough material available. Apart from that, imports from Asia pushed their way onto the market. Ordering activity in turn stagnated at a low level. Converters vehemently tried to reduce their expensively purchased stocks in order to minimise the write-offs. There were no impulses from the end-markets that could have stimulated demand. Not much is likely to change with the situation in July. The ethylene contract continues its downward spiral and, with a drop of EUR 200/t, is even gaining further momentum. European producers will probably not be able to avoid significant price adjustments once again. Despite this, their stocks are likely to grow because new orders are expected to remain in short supply. Ordering could continue to remain slow during the summer holidays, with converters and their customers carrying out destocking measures on a large scale.

PP: A PIE price panellist gave a summary of the market situation that was as apt as it was fatalistic: “No matter how low prices fall, as plastics processors, we aren’t buying anything anyway.” To put it in slightly more concrete terms, the propylene contract was down by EUR 30/t in June. However, during the negotiations, processors were able to secure significantly larger discounts. This was because prices had risen sharply in the preceding months – and there was no sign of an upturn in demand. Even plants operating at significantly reduced capacity in Europe were providing enough to meet demand in full. Some suppliers were even offering additional volumes. In southern Europe in particular, imports from Asia arrived on top of this. On the other hand, ordering activity continued to decline as manufacturers struggled to reduce their costly stock levels. New orders remained few and far between before the summer holidays. No change in the trend is expected for July: the propylene contract continued its downward trend and was settled EUR 190/t lower. This is also expected to push polypropylene prices further down. As purchases continue to stagnate, the stock levels of producers are likely to rise. Processors are still showing a reluctance to buy. The summer months, with their holidays, are once again having a dampening effect on purchases.

PVC: Converters set the pace in June. As the month progressed, what initially appeared to be merely the producers passing on the drop in the cost of ethylene (minus EUR 50/t) to a moderate extent turned into a broader downward movement. Weak demand, well-stocked warehouses, and the holiday period also gave buyers more negotiating scope. Greater price reductions were thus obtained for PVC in many places. A downward price trend also emerged for PVC compounds following three consecutive rounds of price increases. Sufficient material was available on the market in June, not least because production at the former Vynova plant in Wilhelmshaven, Germany, continued unabated, despite the change of ownership. Producers also preferred to sell their products on the European spot market rather than enter into fierce competition with Asian producers in the export markets. The price pressure is set to intensify still further in July. The sharp drop of EUR 200/t in the ethylene contract is opening up considerable scope for further price reductions. At the same time, demand is likely to stall even further during the summer holiday period. Since many converters have built up their inventories and are only buying what they need for the short term, producers might find it almost impossible to prevent their stock levels from rising.

Styrenics: The bull market is over. In June 2026, prices for styrenics declined after a months-long upwards trend. The combination of high prices, speculation about a trend reversal, well-filled stocks, and the oncoming holiday season proved to be a crippling blow to demand. The processors purchased only essential volumes. By consequence, polystyrene producers were able to pass on the increase in the styrene reference price (up EUR 15/t) only at the start of the month. In the weeks that followed, they tried to at least defend the rollover, which failed in numerous instances. Instead, the market saw a number of discounts and downward adjustments of prices at the top of the price range. For EPS and ABS, the rollover actually represented the upper limit while price reductions were dominant. As a result, the average prices of all styrenics reported by PIE declined slightly. Next month, the downward trend in prices is expected to accelerate drastically. No stimuli are expected from the demand side; on the contrary, many manufacturers plan to close for the summer, as the holiday season begins in July. What’s more, there are signs of a geopolitical easing, which is having an impact not only on the price of oil, but also on the styrene reference – the latter plummeted by EUR 270/t in July. In polymer price negotiations, processors will therefore insist on getting a considerable piece of the pie. Weak demand is giving them a boost.

PET: The European PET market saw a significant trend reversal in June 2026. The panic buying triggered by the hostilities in the Persian Gulf had already eased off considerably during the previous month. With their full warehouses, converters were now able to meet demand without any problems. Despite the heatwave in Europe, demand from the end markets remained clearly below seasonal expectations. Imports from East Asia were still available. European suppliers wishing to sell sufficient volumes had no choice but to considerably lower their prices to bring them more in line with the imports. On the supply side, no major changes are currently in sight for July. Since converters will no doubt be able to meet demand from stocks throughout the summer, they have no incentive to make any purchases. Quotations are thus set to fall significantly once more, approaching the pre-war level.

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