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Warwickshire – 11th September 2025
Overview
Opposing price inputs lead to further price stagnation, but producers may push for increases in September.
Whilst all August contract monomer prices, except Benzene, marginally eased for August, increased spot crude oil prices and GBP exchange rate weakness brought inflationary pressures to polymer pricing.
Overall, with no dominant factors, the result is basically looking neutral from an input cost perspective. In some respects, these factors were of little relevance as polymers remain in plentiful supply and so plastic converters have been able to shop around to find material at price rollovers from July, with the occasional discount to be found where sellers are eager to shift volumes or generate cash.
As the seasonal holidays start to draw to a close, thoughts will turn to the price action for September with the expectation that polymer producers will be contemplating price increases for standard polymers with the expectation that demand will increase, and availability tightens.
It remains to be seen if a bullish approach is taken to price increase announcements, or if a more tentative commercial strategy is adopted. Ultimately, the supply/demand balance will continue be a key factor in determining how price evolves, with the likelihood that crude oil prices and feedstock input costs will continue to be weak and therefore unsupportive in terms of price inflation.
Monomer Price Movement
Feedstock
Price per Tonne
Change (contract)
C2 (Ethylene)
£878.60
-£8.66
C3 (Propylene)
£862.85
-£8.66
SM (Styrene Monomer)
£1,219.66
-£30.30
Benzene
£528.89
£13.85
Butadiene
£359.83
-£17.31
Brent Crude (monthly average)
£359.83
£2.31
Exchange Rates
€
1.16
$
1.35
€/$
1.17
Mike Boswell
Executive Chairman – Plastribution Group
Oil Prices
No Data Found
Exchange Rates
No Data Found
UK Economic Data
Topic
Item
Date
Change
Trend
GDP
Real GDP (Q on Q)
Q1 2025
£647,018
PMI
UK Manufacturing PMI
July
48%
UK Output
Manufacturing Index
Q1 2025
101.3%
Sales
New Car Registrations (Y on Y)
July 2025 YoY
5.0%
Sales
Retail Sales (Y on Y)
June 25
105.8%
Labour
Unemployment Rate
Mar 25 – May 25
4.7%
Prices
CPI (Y on Y)
June
3.6%
Prices
RPI (Y on Y)
June
4.4%
Interest Rates
Bank of England Base Rate
August
4%
Standard Polymers
August appears to be around rollover for both PE and PP. Although both Ethylene and Propylene Monomers reduced by €10 / MT, producers appear to be resisting calls for further drops having seen their margins erode significantly this year already.
If we compare pricing to this time last year, PE is roughly €170 / MT lower whilst Ethylene is only €115 / MT lower. PP Homopolymer is roughly €270 / MT lower whilst Propylene is only €120 / MT lower. Not a sustainable business for many producers of PP in Europe.
We continue to see further talk of rationalisation within the industry as European Producers continue to post losses in the face of some very challenging market conditions. Market demand continues to be weak couped with new production capacities on stream. In the first 5 months of 2025, the EU increased imports of PP by 12%.
Outlook for the coming months is largely expected to be around rollover as there is little indication of a change in market conditions. There were some expectations of a rally in September but as oil has dropped back from the highs at the end of July, there appears to be no suggestion of movement in monomer and without a change in the supply / demand balance, we can expect prices to stay quite flat in the short term.
Ian Chisnall
Product Manager – Polyolefins
Polyolefins Feedstocks
£/Metric Tonne by month
No Data Found
LDPE
Supply
Demand
LDPE might be the grade that is forced to pass through the monomer reduction this month having seen a mini rally in pricing recently and has more capacity to give up margin. Although there is some interruption to supply this month with some production down, this does not appear to be a concern for buyers who appear to be able to secure what they need.
LLDPE
Supply
Demand
LLDPE is around a rollover this month, there is some suggestion of port congestion and logistics issues in Houston affecting exports, there appears to be sufficient material available locally to meet demand. There are hints that US producers may look to increase pricing and start to limit sales in preparation for hurricane season, but this doesn’t appear to be shifting the supply / demand balance in a meaningful way.
HDPE
Supply
Demand
HDPE is a similar story to LLDPE with prices appearing quite flat compared to July. Short term outlook appears to be for prices to be quite stable bar any unexpected events.
PP
Supply
Demand
PP pricing is around rollover in August as prices and margins have dropped significantly already this year and producers are refusing to offer any further reductions.
PS
Supply
Demand
PS pricing has fallen in line with the monomer reduction of €35 / MT. Market demand appears to be quite stable and supply is reasonably balanced towards this.
Other Polyolefins
EVA pricing is rollover this month. Polyolefin Elastomers are around rollover but there is some pressure on availability this month.
Performance Polymers
The UK market for performance polymers remains poor, with low demand, and excessive stock levels. Imports from Asia remain high, and as a result of these factors, many European producers are continuing to cut production during the holiday period. There was renewed efforts by some manufacturers to try and push small price increases through, however with the ongoing weak demand and the global oversupply situation, most polymer costs actually softened yet again.
The July benzene contract settled at €637/t, an increase of €26/t from June, whilst August sees yet another small increase of €16/t, with the price settling at €653/t. This may start to impact some materials as the year progresses.
Pete Tillin
Product Manager – Engineering Polymers
Engineering Polymer Feedstocks
£/Metric Tonne by month
No Data Found
ABS
Supply
Demand
Plentiful stocks & good availability, coupled with very low demand mean that prices remain under downward pressure. The styrene monomer price has also declined by a further €35/t in August and the holiday season will only mean that prices may reduce still further.
PA6
Supply
Demand
The market remains particularly competitive due to weak demand and high inventories, and the holiday season means even lower demand and lower levels of supply.
PA66
Supply
Demand
PA66 continues to follow the same trend as PA6 with weak demand and an incredibly competitive marketplace and the annual summer shutdowns will not help demand or supply.
POM
Supply
Demand
A competitive market with plentiful supply and poor demand means prices are stable at best. The vacation season means even lower demand and supply.
PC
Supply
Demand
PMMA
Supply
Demand
Weak demand, coupled with reduced production in Europe means downwards price pressure.
PBT
Supply
Demand
Weak demand, and oversupply means prices remain under downward pressure.
Other Engineering Polymers
The current situation for most other engineering materials is similar, with weak demand, plentiful supply, and therefore downward price pressure.
Sustainable Polymers
Recycled Polyolefins has largely seen a rollover in August and for some grades, slight increases. Whilst demand is still relatively weak, further announcements of closures of recycling facilities both in the UK and in Europe are helping to shift the conversation around pricing.
Ian Chisnall
Product Manager – Sustainability
Recycled LDPE / LLDPE
Supply
Demand
Recycled LDPE / LLDPE is up slightly on the higher quality grades, black and grey appear to be closer to rollover.
Recycled HDPE
Supply
Demand
Recycled HDPE has typically rolled over in August; market appears to be relatively stable.
Recycled PP
Supply
Demand
Recycled PP has seen around rollover in August.
