Stabilty dominates as demand in Europe stays sluggish / Trade tensions loom: EU tariff decision could disrupt polymer supply / Summer slowdown begins

PE: The rollover of ethylene last month had a stabilising effect on PE prices. With the LD grades, some converters nevertheless pushed for belated adjustments after the April negotiations, as the changes had not been factored in during May because of the significant fall in the cost of ethylene. With the LLD grades, the large volume of imports arriving in Europe put considerable pressure on prices. The production cutbacks continued, but in most cases there was more than enough material available to fulfil the weak demand. The renewed rollover for the important ethylene feedstock is likely to once again stabilise prices in July. Basically, not much will change. Material should be abundantly available on the market to meet the demand, even with production plants running with reduced output. Ordering activity is expected to remain weak. Apart from that, a day of uncertainty is approaching, namely 9 July. On the date, the EU’s self-imposed grace period regarding potential punitive tariffs on US imports comes to an end. Should Brussels restart the trade war against US President Donald Trump, it could have a major influence on the supply situation in Europe.

PP: In June 2025, the prices for polypropylene followed the lead of the C3 contract across the board, and stayed at a rollover. Supply was more than sufficient to cover the still meagre purchases. This was due in no small part to a rapid influx of imports from Asia and the Middle East. Demand, however, is still clearly feeling the effects of consumers’ reluctance to spend. Current purchases from sectors such as the furniture industry and household goods are very weak. This is no difference for automotive engineering and E&E, where orders are also at a low level. July looks set to be another month of price stability. This should suit many people; the fact that the propylene contract has been fixed at a rollover for the second month in a row should allow some players to sleep more soundly again. After the oil price rose rapidly in mid-June, rumours were circulating of an increase of up to EUR 40/t. Given the current ordering situation, it would have been difficult for many suppliers and processors to pass price markups on to their respective customers, regardless of the amount.

PVC: “A month to catch our breath” – that’s how many market participants summed up price developments for PVC in June 2025. Prices remained stable, sustained by a rollover for the ethylene contract. Producers used the opportunity to bring some calm back to an agitated market. On the demand side, caution continued to dominate, with virtually no impetus – particularly from the construction and furniture sectors. However, some early signs of renewed activity emerged among automotive converters. Overall, supply was sufficient, enabling contracts to be fulfilled in their entirety. Looking ahead, there are currently no signs of significant change for July. Given the renewed rollover of the ethylene contract, PVC prices should remain stable. Demand is still the main concern, however. As the summer holiday period begins, order volumes are likely to decline in some cases.

Styrenics: In June 2025, declining feedstock costs again set the course for styrenics prices. The prices for polystyrene and EPS generally followed the decline in the styrene reference (down EUR 47/t). For ABS, the discounts settled around the reduction in composite costs (SM down EUR 47/t, butadiene down EUR 50/t, ACN down EUR 24/t). Once more, this shows that neither processors nor producers have left any room to deviate from the cost change because of their slim margins. Moreover, there is a lack of positive momentum from the demand side. A slight increase in orders from processors – who, fearing sharp price rises due to turmoil in the Middle East, sought to secure (more affordable) volumes – turned out to be merely a brief episode. Overall, demand remained weak. In July, demand is likely to weaken further. Alongside the sluggish economy, the onset of the holiday season will likely cause many mid-sized companies to shut down operations temporarily. This reduced demand, combined with another drop in the styrene reference price (July: down 72 EUR/t), will ensure that styrenics prices continue to trend downwards at the start of the third quarter.

PET: The situation on the European PET market was still volatile in June 2025. At least the PX reference prices for April (down EUR 50/t) and May (rollover) were finally fixed at the start of the month. European producers entered the market asking for moderate price increases, but were met with demand that fell short of seasonal expectations. At the same time, as the USD weakened against the EUR, Asian imports became more attractive. Despite brief uncertainty due to tensions in the Middle East, these imports gained a stronger foothold. To secure sales, suppliers not only had to withdraw their initial demands in the course of the month, but also had to agree in some cases to moderate price reductions. Practically all market participants are yearning for stability and predictability, especially as the summer holidays are about to start. There are only a few signs of major changes on the horizon, so July could well turn out to be a calm month in terms of pricing.

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