Precursors once again set the pace / Rollovers prevail for the majority of grades / Only styrene plastics are trending lower again / Imports offset European plant cutbacks

PE: The rollover in ethylene feedstock prices set the tone for polyethylene grade pricing. Due to the summer holidays, some negotiations were concluded early in the month, with prices for the majority of reported grades remaining unchanged. Despite the continuing oversupply on the market, attempts by converters to push through price adjustments were rejected. Order activity remained at a low level, and some companies decided to send their workforce on an early summer break. The holiday season is expected to have a continued impact. Overall, incoming orders are being described as slow. However, a major slump in ordering activity has failed to materialise, not least because some converters are taking the opportunity to build up stocks with lower-priced material. Material bottlenecks are unlikely, even if producers continue to scale back their operations. The ongoing influx of imports is helping to offset this. In view of their dwindling margins, producers are likely to try to retain the reduction of EUR 10/t on the contract price for ethylene in August. Converters, on the other hand, are insisting on an adjustment in view of their own situation.

PP: There were no significant price movements on the Western European polypropylene market in July 2025. Following the recent rollover for the precursor propylene, PP prices generally remained at the previous month’s level. Only in a few instances were processors able to negotiate slight downward adjustments. This was particularly true for talc-filled PP compounds. The already sluggish demand was further dampened by the start of the summer holidays, during which many processors stopped production and carried out maintenance work. As a result, unplanned plant outages at PP producers did not have a major impact, especially as another production unit returned from a force majeure and imports increased supply levels. The rather calm situation is unlikely to change much in August. This is because, on the one hand, the summer holiday season is in full swing, and on the other, only slight discounts are to be expected after the slight fall in C3 in August (down by EUR 10/t).

PVC: In July, PVC prices moved sideways across the board, mainly due to the fact that ethylene rolled over again. Producers stuck to their significant cutbacks in output and, in addition, a plant was shut down for maintenance. Nevertheless, contracts could be fulfilled without exception. Little movement with very little fresh stimulus is forecast for August. No major changes to the market are to be expected. The ethylene contract is trending somewhat lighter (down EUR 10/t), which means that, if at all, minor price reductions may come up for discussion. On the procurement side, the situation remains stable – despite constantly reduced plant capacities, all contracts will likely be fulfilled as planned. For converters, when they take a look at their order books, the situation is likely to be much more tense. The miserable incoming order activity is a serious cause for concern. Only a few are remaining optimistic and are currently considering, in view of the low prices, topping up their stocks or buying cheap material from Asia. Meanwhile, producers’ quarterly figures are showing a clear picture – the figures are deep in the red. From their point of view, something has to change regarding the PVC price structure. Correspondingly, it can be expected that after the holidays, suppliers will undertake fresh attempts to raise margins in order to have at least something to negotiate with during the annual talks.

Styrenics: Prices for Western European styrenics declined for the fourth month in a row in July 2025. EPS insulation materials reached their lowest level since January, while polystyrene was cheaper than it has been for two years and ABS injection moulding cheaper than last in February 2021. But no one, among neither suppliers nor processors, was really happy about it. On the one side, volumes were below expectations; on the other, margins weren’t good, either. “At the moment, nobody is earning any money,” complained one participant in the PIE price survey. All of this leads to almost no room for manoeuvring and styrenics prices have as a result essentially followed the changes in costs; an example of this is ABS. Meanwhile, some polystyrene suppliers insisted on retaining part of the cost reduction of styrene (down EUR 72/t) in order to bolster their emaciated margins. Some EPS contracts, by contrast, were concluded with discounts exceeding the SM cost change because some suppliers attempted to place additional volumes on the market in the second half of the month. The market is likely to be similarly weak in August, when the peak holiday season puts an additional damper on the already sluggish demand. As the SM reference also declined by EUR 35/t, prices for styrenics will certainly erode a bit further in August.

PET: The European PET market in July was divided into two. In Southern Europe, the heatwave boosted demand for drinks – and consequently for PET – quite notably. But demand in Northern Europe remained very weak. Overall, inventories in the value chain are well stocked, and PET producers responded with further cutbacks in production. Import offers were, in price terms, not far away from European quotations. In this environment, regular purchases all in all witnessed some minor hikes. No positive impulses are evident anywhere in August, neither on the supply nor on the demand side. On the contrary, most players anticipate a further decline in purchasing activity because inventories are adequately filled to cope with all eventualities. The marginal increases seen in July could quickly be reversed.

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