Market slump continues / Prices moving sideways at best

PE: In October, many producers aimed to rid themselves of surplus material, granting price reductions in the process. As a result, the competition with cheap imports intensified. Though the ethylene contract rolled over, prices ultimately continued their downward movement. Ordering remained slow despite favourable pricing. Pre-purchases of material were still few and far between because many buyers are ordering only what they absolutely need in expectation of a further fall in quotations. In fact, the downward price spiral is likely to pick up speed a little in November. The reason is not only that the ethylene contract for November was fixed EUR 25/t lower, but also that the efforts made by producers to reduce stocks will probably increase in view of the upcoming annual balance sheet. With large quantities of imports reaching European shores, the market remained in surplus. There can nevertheless be no talk of a recovery in demand from converters – ordering activity remains slow in a miserable economic situation. Only a few players are toying with the idea of stocking up in view of the uncertainty over the developments in Q1 2026.

PP: The rollover for the precursor propylene was not enough to keep prices for polypropylene stable in October 2025. Since demand picked up somewhat – but remained weak overall – and because producers wanted to avoid excessively high inventory levels before the turn of the year, suppliers generally conceded slight price reductions. The picture was slightly different for compounders. For the most part, they were able to keep prices for talcum and glass fibre-reinforced compounds at the previous month’s level. They benefitted from the unexpected increase in demand, particularly from the E&E segment. However, all market players are preparing for further price reductions in November. This is because the contract price for propylene fell by EUR 25/t, and the price of polypropylene should also follow the C3 decline in the absence of other stimuli.

PVC: The European PVC market remained largely stable in October 2025, even though the supply side continued to exert pressure. Price developments differed, with contract prices mostly moving sideways while some spot prices experienced a considerable fall. On the demand side, the construction and infrastructure customer sectors failed to generate any momentum. At the same time, import volumes from Asia increased the pressure on European producers’ margins.

Styrenics: The downward trend is unbroken – in October 2025, styrenics prices declined for the seventh month in a row. The further eroding styrene reference and persistently weak demand left no other way open. Even though volume calls improved slightly in October, demand for polystyrene, EPS, and ABS remained well below normal levels. This is unlikely to change in the final months of the year. As the styrene reference continued its downward course in November, falling EUR 17/t, styrene prices are likely to maintain the daunting trend now ongoing for eighth months in a row.

PET: The European PET market was just as gloomy as the weather in October. Customers were under no pressure to fill their warehouses given the persistently low level of demand from end markets. The struggling European producers had to secure their disappointingly low sales through what at times were disastrous, cut-throat prices. “Crisis” was the word of the moment. With the reductions offered, prices mostly slid down into the three-digit range, as expected. The European paraxylene reference contract for October was fixed at EUR 735/t, down EUR 30/t. Once again, the European market had no choice but to follow the weaker Asian benchmark. The gloomy market conditions in this part of the world are unlikely to change. Nevertheless, only minor discounts for PET are to be expected, as prices have largely bottomed out.

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