Overview
Firm crude oil prices fail to support polymer pricing as weak market fundamentals dominate price action.
Whilst oil prices remain volatile on a day-to-day basis as a reaction to positive and negative rumours of a peace deal in the Middle East, average price levels remained just above $100 per barrel for Brent Crude. Prices GBP per tonne also increased from April to May as a result of weakness in the USD.
Against this backdrop, the prices of many monomers – and to a greater extent many polymers – lost ground as sellers chased the limited requirements of converters. Given the unprecedented rate at which polymer prices rose, as converters sought to secure inventory in March, then it came as no great surprise that the sentiment was one of too much, too fast and too soon.
So, what next? Will prices continue to soften, or will there be a bounce back? In all honesty no one is too sure. Of course, the Western European holiday season is almost upon us and with that typically comes lower demand, but the global picture may emerge to dominate the situation as a number of petrochemical and refinery sites have been damaged as a result of the conflict, causing supply outages.
In Asia, capacity is idled due to a lack of Crude Oil and Naphtha feedstock and this could make polymer supply tighten as underlying consumer demand outstrips polymer supply. In any event crude oil prices are up by over £200 per tonne since the start of 2026, and if the current prices persist, this will tend to underpin polymer pricing in the mid-term.
Monomer Price Movement
Feedstock
Price per Tonne
Change (contract)
C2 (Ethylene)
£1,432.39
-£43.54
C3 (Propylene)
£1,354.02
-£26.12
SM (Styrene Monomer)
£1,708.42
£13.06
Benzene
£1,040.55
£114.07
Butadiene
£1,162.46
-£34.83
Brent Crude (monthly average)
£573.85
£23.73
Exchange Rates
€
1.15
$
1.35
€/$
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
May
53.9
UK Output
Manufacturing Index
Q1 2026
100.4%
Sales
Retail Sales (Y on Y)
April 26
107.8%
Labour
Unemployment Rate
Jan 26 – Mar 26
5.0%
Prices
CPI (Y on Y)
April
2.8%
Prices
RPI (Y on Y)
April
3.0%
Interest Rates
Bank of England Base Rate
April
3.75%
Standard Polymers
June has seen significant price falls in both PE and PP as the market corrects following the significant increases experienced in March and April. The price increases were driven both by significant cost increases in monomers but also be concern about availability. As supply doesn’t appear to be affected as badly as initially feared, buyers are stepping back and prices are dropping. Monomers C2 and C3 dropped by €50 and €30 / MT respectively, the ethylene drop reflects better availability as some crackers come back online.
Current spot indications for monomers and feedstock cost reductions suggest that prices will continue to fall into July. That is likely to lead to further reductions in July for polymers but likely to be at a slower pace than we are seeing now as buyers come back to the market having relied on stocks.
This spiky pricing movement is more likely to lead to a rebound after the summer lull, but it will depend on how demand looks and if alternative supply routes continue to be robust. There are concerns over freight rates from the Far East, but whilst demand remains poor, there is still just about enough material being made outside of the Middle East to keep things in balance so we may hit a plateau.
Styrene Monomer is up €15 / MT over May but that has not been passed through with most sellers accepting rollover after initial attempts at small increases were rebuffed.
Ian Chisnall
Product Manager – Polyolefins
Polyolefins Feedstocks
£/Metric Tonne by month
LDPE
Supply
Demand
LDPE has dropped substantially in June. As the grade that saw the biggest increases in March and April, a significant correction was expected and has dropped in the region of €300-400 / MT depending on the starting point. Outlook for the coming months is for further drops but likely to be more in line with monomer.
LLDPE
Supply
Demand
LLDPE is down in June with drops in the region of €200-300 / MT as imports from USA continue to arrive and change the supply / demand balance. Buyers feel secure in supply and are willing to hold off on purchases in hope of better pricing going forward. Likely to see further reductions in July but more in line with monomer after this correction.
HDPE
Supply
Demand
HDPE is also down by about €200-300 / MT as imports continue to arrive from USA and further afield to replace missing volumes not passing through the Strait of Hormuz. HDPE is the grade probably under most threat of shortages should we see a shift upwards in demand.
PP
Supply
Demand
PP pricing is down but not as much as PE with drops of around €200 / MT although recently, we have seen a drop in demand that may push prices down a little more. We are more dependent on the Middle East for PP with around 50% of Europe’s imports coming from that region but demand is currently quite low (Automotive, Construction etc.) that there is enough supply to meet demand.
PS
Supply
Demand
PS pricing has rolled over this month as the attempts to pass through the monomer increase of €15 / MT have been rejected. Market is well balanced.
Other Polyolefins
EVA pricing is down but not as much as other PE grades due to more balance in supply and demand and the higher cost of VAM. Reductions of around €100 / MT are reported. Speciality POP and POE grades have mostly moved down with monomer but we are seeing corrections in pricing to try and stimulate demand.
Performance Polymers
The market for performance polymers is best summarised as having lower demand and slightly higher prices, as the conflict in the Middle East continues. Some materials/producers are less reliant on the impact from the conflict and others have found ways around the ongoing Strait of Hormuz closure. It will still be some time until the market situation returns to normal.
The Benzene contract price for June settled at €1,195/t, up by €131/t from May and at its highest level for more than two years. Availability is also still impacted and supply is very low, barely meeting the current low demand.
Pete Tillin
Product Manager – Performance Polymers
Performance Polymer Feedstocks
£/Metric Tonne by month
ABS
Supply
Demand
ABS price rises appear to have stalled, mainly due to improved availability and a slight reduction in composite costs. The styrene monomer contract price increased by a further €15/t in June, however ACN was down by €11/t, and butadiene down by €40/t. Supply has normalised, and many customers are now waiting to see what happens longer term.
PA6
Supply
Demand
Prices are still increasing, but at a slower pace due to low demand and imports now starting to arrive from the other regions including the Far East.
PA66
Supply
Demand
A similar picture to PA6, with further increases announced, but at a lower rate. However, demand is still low, with many customers sitting tight until cheaper material from the Far East starts to arrive.
POM
Supply
Demand
As with many other performance polymers, demand is down, however material is still tight so producers continue to try and force through increases. This situation is however becoming increasingly difficult as demand continues to reduce.
PC
Supply
Demand
Price rises continue due to higher benzene costs, albeit now at a slower rate. How much will be forced through depends on demand, particularly from the automotive sector and the level of imported material, especially from the Far East.
PMMA
Supply
Demand
Demand is falling and as cheaper material starts to arrive from the Far East, it is becoming more difficult for European producers to force through increases.
PBT
Supply
Demand
Supply is low, so producers are still forcing through further price increases, but demand is falling.
Other Engineering Polymers
The situation for all other engineering materials is broadly similar, with limited availability and increasing prices.
Sustainable Polymers
Recycled Polyolefins appear to have peaked as the momentum in the market has gone with virgin prices dropping significantly in June. Having seen virgin buyers look to recycled as an option in times of limited availability, they have gone back to virgin as availability improved. Recycled is back to recent markets, those buying for low cost and those buying for tax exemption and branding requirements.
Ian Chisnall
Product Manager – Sustainability
Recycled LDPE / LLDPE
Supply
Demand
Recycled LDPE / LLDPE has peaked and depending on the quality, has stared to come down as demand fades. The highest quality grades are now at parity with virgin and only being used if necessary. Lower quality grades still offer a saving and prices have held up a little but will come under increasing pressure.
Recycled HDPE
Supply
Demand
Recycled HDPE has also peaked and are coming down as virgin prices have come down significantly in June and availability is much improved. Natural grades are holding up relatively well as brands promote Sustainability in personal care packaging. Industrial grades are under a little bit of pressure as demand from key sectors is weak.
Recycled PP
Supply
Demand
Recycled PP has peaked and deals are back on the table from suppliers as demand softens with virgin much more available and down in price. Natural grades still command strong pricing and are back above virgin but industrial grades are feeling the pressure of good availability and weak demand.
