Overview
Polymer prices explode as a result of the crisis in the Middle East.
Concerns over the supply situation have caused rapid price inflation for all polymers with standard polymers including polyethylene and polypropene experiencing the most violent price movements as concerns about availability drive market dynamics.
These pressures are multifactorial and include increased crude oil and natural gas cost, damage to petrochemical plants across the Middle East, petrochemical plants in South-East Asia starved of feedstock, inventories of polymer being marooned as a result of the Iranian blockade affecting shipments through the Strait of Hormoz. Probably, the full extent of supply outages is yet to be realised until existing supply chains have fully emptied; Afterall just a few weeks ago there were global surpluses of almost all polymers, with local warehouses and supply lines with bountiful products.
In many cases prices have already risen to levels above those witnessed in the immediate aftermath of the Covid-19 pandemic and the subsequent Russian invasion of Ukraine.
What is still entirely unclear is, when hostilities will diminish to enable normal trade, how long it may take to repair damaged petrochemical complexes, how long it will take for global shipping to return to normal and what impact there may have been to underlying demand (as and if either consumers stop buying plastics related products or if plastics are substituted by cheaper and more available alternatives).
The fundamentals of supply and demand economics do have limits that are determined by the market, although this can be complex in products such as packaging, where a drastic increase in the plastics element will not necessarily result in such a significant % price change for the product. That said, there appears to be some evidence of prices peaking as suppliers start to moderate their approach
Monomer Price Movement
Feedstock
Price per Tonne
Change (contract)
C2 (Ethylene)
£1,388.85
£391.84
C3 (Propylene)
£1,275.65
£404.90
SM (Styrene Monomer)
£1,647.47
£408.38
Benzene
£898.62
£234.23
Butadiene
£1,023.14
£339.59
Brent Crude (monthly average)
£463.50
£86.62
Exchange Rates
€
1.15
$
1.33
€/$
1.17
Mike Boswell
Executive Chairman – Plastribution Group
Oil Prices
Exchange Rates
UK Economic Data
Topic
Item
Date
Change
Trend
GDP
Real GDP (Q on Q)
Q4 2025
£706,067
PMI
UK Manufacturing PMI
March
51
UK Output
Manufacturing Index
Q4 2025
101.1%
Sales
Retail Sales (Y on Y)
February 26
106.4%
Labour
Unemployment Rate
Nov 25 – Jan 26
5.2%
Prices
CPI (Y on Y)
February
3.0%
Prices
RPI (Y on Y)
February
3.6%
Interest Rates
Bank of England Base Rate
March
3.75%
Standard Polymers
April has seen significant increases in all polymers as we face a severe crisis in availability throughout the supply chain of polymers due to the disruption in the Middle East, particularly the lack of transit through the Strait of Hormuz.
Both C2 and C3 monomer contract prices have risen by record amounts, C2 by €450 / MT and C3 by €465. In total, over the 2 months since February, both are up €500 / MT. Spot prices for C2 and C3 are trading above the contract price. This is driven by the lack of availability and the cost of Naphtha. Styrene Monomer is up €469 / MT over March.
The price increases we are seeing in April for PE and PP over the price we had in February are at least €1,000 / MT. For some materials in particularly short supply and high demand, the increases are reported around €1,500 / MT.
Many are asking why the increases are so far above the movement in monomer and the answer is because the price is driven by supply and demand. For much of 2025, European producers were selling PE and PP at a loss with the gap from monomer to polymer less than the cost of production. With the change in market, they are looking to recover to a position where it is profitable to make polymers again.
Ian Chisnall
Product Manager – Polyolefins
Polyolefins Feedstocks
£/Metric Tonne by month
LDPE
Supply
Demand
LDPE has increased by €1,000-1,500 / MT in April depending on the starting point of March. LDPE is currently in very short supply in Europe. We had SABIC in Force Majeure and whilst we believe they are back in production; we now have Total and Mol declaring Force Majeure further restricting supply. There is very strong global demand for LDPE, and some European producers can get better pricing selling elsewhere.
LLDPE
Supply
Demand
LLDPE is up by €800-1,200 / MT in April depending on the March starting point. Availability continues to be restricted due to lack of exports from Middle East and whilst there is some material coming from USA, they have other markets that they can sell into that are also facing shortages. Full effects of delays likely to be felt this month and May.
HDPE
Supply
Demand
HDPE is up by €900-€1,200 / MT over March. HDPE is a major export from the Middle East and a significant amount would pass through the Strait of Hormuz, we also have reports of plants going down for safety reasons. Whilst some material will come from USA, there is not enough to meet demand.
PP
Supply
Demand
PP pricing is up around €1,000 / MT in April with some increases above that reported on Copolymer. PP is a major export of the Middle East, but we are also seeing a lack of availability from SE Asia. They rely on Middle Eastern oil and Naphtha to run their crackers and produce the propylene for their PP plants. European plants cannot increase production to meet demand.
PS
Supply
Demand
PS pricing has risen significantly beyond monomer and increases of €600-700 / MT are reported. Imports are down and Trinseo are in Force Majeure on HIPS, further restricting availability. Styrene Monomer is tight and production is being limited as a result.
Other Polyolefins
EVA pricing is up around €1200-1500 / MT. This is due to the energy intensive cost of producing VAM. Availability is restricted and sellers are adopting a “Take it or Leave it” approach. Speciality POP and POE grades that were typically linked to monomer have shifted their pricing mechanisms with increases beyond monomer as they cite increased costs of production and poor availability of monomers.
Performance Polymers
The market situation is still being dominated by events in the Middle East. It remains to be seen just how much of a medium to long term impact it will have, but for now, the messaging is one of higher prices, longer lead-times, shipping issues, and general delays.
Some producers have introduced temporary surcharges whilst others have stopped accepting orders altogether. With prices increasing rapidly and by large amounts, the events of recent times will only increase the momentum for higher prices, while simultaneously, inventories are being depleted.
The Benzene contract price for April settled at €1032/t, up by €269/t from March, with availability also severely impacted.
Pete Tillin
Product Manager – Performance Polymers
Performance Polymer Feedstocks
£/Metric Tonne by month
ABS
Supply
Demand
ABS prices are skyrocketing, with increases of up to £1700/t. The styrene monomer contract price increased by €469/t in April, ACN was also up by €541/t, and butadiene up €390/t. Supply is extremely low, and many customers are either desperately trying to secure material at any price, whilst others are adopting a more wait and see approach if they are able.
PA6
Supply
Demand
Prices are increasing rapidly with numerous announcements, but demand is fairly steady, so no short-term supply issues are foreseen.
PA66
Supply
Demand
A similar picture to PA6, with massive increases announced and being implemented.
POM
Supply
Demand
Sharply increasing prices, material delays and shortages from Far East producers, the situation for POM is becoming worse by the day. Price rises of well over £500/t are now the norm.
PC
Supply
Demand
Similar to the POM situation, prices have increased massively and shipping delays, production shortfalls and buyers wanting to secure material are all causing big problems.
PMMA
Supply
Demand
Similar to other materials, prices are increasing rapidly and by large amounts. MMA supply issues are also causing problems with the availability for PMMA.
PBT
Supply
Demand
Massive price rises of over £500/t are implemented, and supply is low. Expect further increases and supply problems.
Other Engineering Polymers
The situation for all other engineering materials is broadly the same, with poor availability and rapidly increasing prices.
Sustainable Polymers
Recycled Polyolefins are starting to see significant price increases as demand surges. With virgin prices up significantly and availability restricted, many buyers are turning to recycled material to fill the gap. Increases of €200-300 / MT are being reported, particularly for the higher quality grades that can more easily swapped in for virgin.
Ian Chisnall
Product Manager – Sustainability
Recycled LDPE / LLDPE
Supply
Demand
Recycled LDPE / LLDPE has seen some very strong increases in April, higher quality grades are up €300-400 / MT as buyers look for alternatives. The more industrial grades are also seeing healthy increases in the region of €200 / MT as demand outstrips supply. Recyclers will also be looking to pass on the much higher costs of inputs as bale prices for scrap are now reported well over £1,000 / MT for high quality sources.
Recycled HDPE
Supply
Demand
Recycled HDPE has up sharply in April with increases of €150-300 / MT reported depending on the starting point and the quality of the product. As with LDPE, demand for grades that can be swapped into virgin applications is very strong whilst industrial grades are seeing more modest increases, they are still up to highs not seen for many years.
Recycled PP
Supply
Demand
Recycled PP is also seeing big increases as virgin PP becomes very tight. Increases of €200-300 / MT are widely reported.
