Standard thermoplastics November: Situation remains bleak across all grades / Prices mostly in decline / Weak demand meets stock reduction trend / No optimism at end of year

PE: Overall, price agreements followed the movement of the ethylene contract (down EUR 25/t). Some converters were even able to obtain larger reductions in special deals, provided they were still taking volumes from producers at all. However, in November there were also attempts – mainly by two major producers – to push prices slightly upwards. Production cutbacks in most cases did not bring the desired effect. There is still no sign of any shortage on the market, and some suppliers were still clearing out their sizeable stocks. Demand and capacity utilisation levels among most converters remained weak. Nevertheless, anyone not constrained by end-of-year balance sheet considerations decided to stock up on favourably priced material. As a result, call-off figures were fairly solid. In view of the ethylene rollover, it is unlikely that prices are about to rise. Major movements are not expected. In many places, production can only continue for about two more weeks. After that, converters intend to complete the usual year-end tasks before heading into the Christmas break.

PP: The situation is what it is – rather bleak. The propylene contract fell by EUR 25/t in November, dragging polypropylene prices down with it. Sluggish demand and cheap imports exerted additional pressure. As suppliers also wanted to sell off their volumes, a number of special deals were made. In most cases, converters reduced their inventories for year-end balance-sheet reasons, keeping order activity at a low level. Since the price of the precursor propylene was fixed at a rollover for the last month of the year, polymer prices are also unlikely to change much. December is considered a short month, anyway. Many processors are planning to shut down their systems and carry out maintenance work starting in the third week of December. Following this, a number of companies will likely start their Christmas holidays. Order volumes are expected to be negligible.

PVC: The European PVC market was once again very much a buyers’ market in November. Producers were unable to retain any of the ethylene cost reduction (down EUR 25/t) for themselves. On the contrary, in many places price cuts were somewhat higher than would have been the case had the pro-rata cost savings simply been passed on. At the same time, stock reductions were being stepped up at many locations for balance-sheet purposes. December has traditionally been regarded as a short month. Production plants are closed for maintenance and employees given time off during the holidays. Producers’ expectations of achieving significant sales are therefore scaled back accordingly. Prices are also unlikely to be adjusted by any significant amount – particularly since the ethylene contract was fixed at the same level as in the previous month. Players on both sides will be keen to bring the monthly negotiations to a swift conclusion and switch the focus to the annual agreements for 2026. For the first quarter of 2026 at least, many converters are expecting little improvement in demand. Some are thus planning extensive adjustments to their supplier portfolios. By concentrating their purchasing volumes on fewer suppliers, they hope to gain additional leverage for price concessions.

Styrenics: Prices for styrenics fell for the eighth consecutive month in November 2025, dropping to their lowest level since early 2021. Once again, declining feedstock costs – in particular, the renewed fall in the styrene reference (down EUR 17/t) – together with generally weak demand put downward pressure on prices. In many cases, reductions went beyond the decline in monomer costs, especially when suppliers launched discount campaigns to reduce inventories for balance-sheet reasons ahead of the year-end. December is poised to be an interesting month. At the end of the year, the styrene reference trended slightly firmer for the first time in a long while (up EUR 21/t). For PS and EPS, some suppliers will likely try to price in the slight cost increase to avoid further margin erosion. Still, it seems probable that some producers will refrain from demanding premiums to counter the low volume calls in December, keeping prices stable instead. This is particularly likely for ABS, as the increase in composite costs was even smaller here (SM up EUR 21/t, butadiene down EUR 40/t, ACN up EUR 20/t) and the pressure from low-cost imports persists.

PET: Little change was seen in terms of the miserable state of the PET market in November 2025. Demand remained low. Suppliers of both European and imported goods had no choice but to somehow cope with the bleak sales situation. The PX contract for October was fixed late, as expected, down by EUR 30/t. In the dense atmosphere prevailing at the point where prices had evidently bottomed out, slight reductions were granted for PET again in order to at least secure what was absolutely necessary. Not much is set to change in terms of the market situation in the weeks to come. December has already been written off by almost everyone, and attention is now turning to 2026. There is not a lot of room left for further downward movement. A rollover or slight reductions for smaller quantities are likely. Even special offers between Christmas and the New Year would seem improbable.

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