Overview
January gets off to a subdued start, with producers resisting calls for monomer related discounts.
With the exceptions of SM (Styrene Monomer) and Benzene, contract monomer prices fell slightly from December into January.
In the case of PE, the market situation for LDPE is tighter and, in many producers are seeking price increases and elsewhere the view of prices being at the bottom is resulting in a price rollover for LLDPE and HDPE and all of the especially low offers present at the end of 2025 are now completely absent from the market.
The styrenic polymer market, could see a range of scenarios, and there is the possibility of ABS price increases as a significant European plant is currently out of action and anti-dumping duties have been applied to imports from South-East Asia for imports to the EU27 will further serve to tighten the market, in other cases polymer processors will seek to dodge any increases on the basis of ample availability.
Whilst demand is not strong, many processors secured much of their requirement for January in December and with limited 2026 transaction volumes so far, the market lacks any great clarity. January is always a long, drawn-out affair, and it will be interesting to see how sentiment develops.
Monomer Price Movement
Feedstock
Price per Tonne
Change (contract)
C2 (Ethylene)
£938.60
-£21.73
C3 (Propylene)
£825.62
-£26.07
SM (Styrene Monomer)
£1,068.96
£18.25
Benzene
£573.59
£26.07
Butadiene
£608.35
-£17.38
Brent Crude (monthly average)
£364.15
-£17.95
Exchange Rates
€
1.14
$
1.34
€/$
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)
Q3 2025
£705,603
PMI
UK Manufacturing PMI
December
50.6
UK Output
Manufacturing Index
Q3 2025
99.8%
Sales
New Car Registrations (Y on Y)
Oct 2025 YoY
0.5%
Sales
Retail Sales (Y on Y)
November 25
103%
Labour
Unemployment Rate
Aug 25 – Oct 25
5.1%
Prices
CPI (Y on Y)
November
3.2%
Prices
RPI (Y on Y)
November
3.8%
Interest Rates
Bank of England Base Rate
December
3.75%
Standard Polymers
2026 has started in a relatively calm manner with rollover generally seen across the board in Polyolefins. An outlier is LDPE, with the SABIC UK plant in FM, availability is limited and this is driving pricing up. SABIC are indicating that the plant will not be running again until the end of Q1 so can expect LDPE pricing to be firm for a few more months.
Although monomers dropped, most sellers are resisting attempts from buyers to pass this through as they have reached the bottom of where they are willing to go. Many producers are restricting output, one has confirmed a 50% cut in PP production as the economics of production are currently so poor that stopping production makes more sense.
Prices are expected to stay relatively stable in the coming months though geopolitics may have an effect.
Ian Chisnall
Product Manager – Polyolefins
Polyolefins Feedstocks
£/Metric Tonne by month
No Data Found
LDPE
Supply
Demand
LDPE market is currently tight following the FM at SABIC and recent planned maintenances in Europe. This is helping to strengthen pricing and we are seeing increases accepted with a take it or leave it approach from many sellers. Market is expected to be tight for the first quarter giving producers more confidence in negotiations.
LLDPE
Supply
Demand
LLDPE has mostly rolled over in January though some producers are hoping to catch a tail wind from the increases on LDPE and push through some modest increases. Seems unlikely at this point as imports are still arriving and demand is still a little muted although the New Year is starting relatively well.
HDPE
Supply
Demand
HDPE is a similar story to LLDPE with a rollover broadly seen in the market despite the monomer reduction. Short term outlook is for relative price stability for the first quarter.
PP
Supply
Demand
PP pricing is a little bit mixed with some early attempts at a small increase giving way to a general rollover as demand remains lower than hoped for. Some buyers have pushed for the monomer reduction but are being rebuffed by producers deeply in the red and refusing to lower prices further. Whilst there are competitive offers from Asia, freight rates are increasing and offsetting any lower prices offered.
PS
Supply
Demand
PS pricing has roughly risen in line with the monomer increase of €21 / MT. Polystyrene market is shifting a little as imports are slightly lower and European production more in balance with demand. The closures announced last year will start to have an effect in 2026 so we can expect to see a slightly stronger approach from sellers.
Other Polyolefins
EVA pricing has rolled over as we continue to see interruptions to supply in Europe. Speciality POP and POE is a mixed picture with some reductions seen due to monomer linked pricing and some asking for rollover.
Performance Polymers
The New Year appears to have started in a subdued fashion, much like the end of last year. Producers have re started production plants slowly as the market is characterised by low demand, high stocks, and cheap imports, particularly from Asia. It does seem as though the rate of price decline is slowing, which may mean that the bottom of the market has been reached. Indeed, POM in particular is showing no further decline in cost.
For the third consecutive month, benzene contract prices rose, with January settling at €660/t, up €30/t from December. The increase was due to the rise in prices on the spot markets, in response to lower import volumes.
Pete Tillin
Product Manager – Performance Polymers
Performance Polymer Feedstocks
£/Metric Tonne by month
No Data Found
ABS
Supply
Demand
The New Year may bring more stable prices for ABS. The styrene monomer contract price increased by €21/t in January, but ACN was down €36/t, and butadiene down €20/t. This possibly means rollover is the most likely outcome, but prices may well rise over the next few months of this year. However demand remains low and stocks high.
PA6
Supply
Demand
The market remains particularly competitive due to weak demand and high inventories. No upturn in demand is expected in the short term, so some further discounting might be possible.
PA66
Supply
Demand
The situation for PA66 continues to follow the same trend as PA6 with weak demand, high stock levels, and an incredibly competitive market.
POM
Supply
Demand
A competitive market with good supply and low demand. However there is a possibility of more stable prices, depending on the level of cheaper imports, particularly from Asia.
PC
Supply
Demand
Continued weak demand, coupled with low production levels in Europe, high levels of imports and full inventories means yet more potential downwards price pressure.
PMMA
Supply
Demand
The surplus of stock, cheap imports and poor demand means that prices continue to be under downwards 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 have mostly seen around a rollover reflecting the pricing seen in the virgin market. Recycled LDPE/LLDPE has been boosted by the increases in pricing and reduced availability of virgin LDPE. As with the virgin market, producers are resisting any attempts at further discounts as they try and get back to profitability.
Ian Chisnall
Product Manager – Sustainability
Recycled LDPE / LLDPE
Supply
Demand
Recycled LDPE / LLDPE has seen modest increases as virgin LDPE is a little tight and this has reopened opportunities for recycled in some applications.
Recycled HDPE
Supply
Demand
Recycled HDPE has rolled over in January, demand remains muted but as with virgin pricing, the market perception is that we are at the bottom.
Recycled PP
Supply
Demand
Recycled PP is rolling over in line with virgin prices. Demand appears stable and supply is being adjusted to match it.
