Overview
Feedstock cost increases have limited influence on polymer pricing, but have prices now bottomed out?
The Middle East crisis continued to drive volatility in the crude oil markets, and the ongoing conflict between the US and Iran resulted in Brent Crude prices swinging 35% within July as markets reacted to repeated ‘deal or no deal’ updates on almost a daily basis. By the end of July Naphtha prices had risen sufficiently to result in inflation being passed though into all feedstocks apart from Butadiene, albeit the price for C2 took some time to settle as sellers and buyers fought hard to agree the final level of increase.
In the case of standard polymers, apart from LDPE, polymer converters firmly resisted calls for any price increases and either decided to deploy existing inventories or were able to secure material without premium from a market with plentiful supply. Depending on what happens to feedstock prices at the beginning of September, many polymer producers may regard this as ‘unfinished business’ when it comes to the next round of price negotiations.
With most converters taking the view that the market is now at the bottom, volumes have picked up as polymer buyers replenish inventories and look to secure further stock at low prices as a contingency in the event that prices go up in the autumn.
The prices of performance polymers continue to tick up as polymer producers look to pass through polymer price increases, and their efforts are often supported as the situation in the Middle East continues to result in some tightness in supply for certain grades.
In summary, it looks like September is going to be a pivotal month in terms of setting the price trend through until the end of the year.
Monomer Price Movement
Feedstock
Price per Tonne
Change (contract)
C2 (Ethylene)
£1,269.54
£36.27
C3 (Propylene)
£1,211.93
£46.94
SM (Styrene Monomer)
£1,571.24
£127.17
Benzene
£1,089.89
£157.04
Butadiene
£926.02
-£42.67
Brent Crude (monthly average)
£471.20
-£5.86
Exchange Rates
€
1.17
$
1.34
€/$
1.14
Mike Boswell
Executive Chairman – Plastribution Group
Oil Prices
Exchange Rates
UK Economic Data
Topic
Item
Date
Change
Trend
GDP
Real GDP (Q on Q)
Q1 2026
£709,598
PMI
UK Manufacturing PMI
July
51.9
UK Output
Manufacturing Index
Q2 2026
101.1%
Sales
Retail Sales (Y on Y)
June 26
109.9%
Labour
Unemployment Rate
Mar 26 – May 26
4.9%
Prices
CPI (Y on Y)
June
2.6%
Prices
RPI (Y on Y)
June
3.0%
Interest Rates
Bank of England Base Rate
July
3.75%
Standard Polymers
September appears to be seeing reductions in both PE and PP. Although Ethylene increased €5 / MT and Propylene rolled over, there is simply too much material available in the market and nowhere near enough demand to absorb it. The supply and demand dynamic is beating the cost pressures that the producers are facing. Although European producers are deeply in the red with margins, the level of imports continues to be significant, and prices are reflecting this with buyers holding a strong bargaining position.
Talk of rationalisation within the industry as European Producers continues with the announcement of a likely 0% tariff on imports of polymers from the USA doing nothing to ease concerns about the profitability of aging plants. Whilst the “market price is the market price” still holds true whether tariffs are applicable, without a shift in demand, the writing is very much on the wall for European production of commoditised grades. The only hope appears to be finding niche applications for high performance grades in Metallocenes and Impact Copolymers.
Outlook for the coming months is largely expected to be flat as there is little indication of a change in market conditions.
Ian Chisnall
Product Manager – Polyolefins
Polyolefins Feedstocks
£/Metric Tonne by month
LDPE
Supply
Demand
LDPE pricing has slipped even though it is less affected by import volumes. Demand is weak and although Europe products is being throttled back to try and balance supply, prices are still under pressure. Falls of €20-40 / MT are being reported early in the month.
LLDPE
Supply
Demand
LLDPE is falling as we see significant imports into the UK and Europe. Prices in USA are not great, and the UK is seen as a good export market for US based producers. Falls of €30-50 have been reported early in the month although some of this is a market correction from some producers that tried for increases in August
HDPE
Supply
Demand
HDPE is a similar story to LLDPE with prices falling slightly in the face of plentiful imports and weak demand.
PP
Supply
Demand
PP pricing is dropping in September, even with the monomer rollover. No suggestion of an improvement in demand and imports keep coming, trading activity is strong and with nothing to suggestion any interruption to supply, buyers are only buying what they need to fulfil their requirements. Outlook for the rest of the year suggests a flat market.
PS
Supply
Demand
PS pricing has fallen in line with the monomer reduction of €45 / MT. Market demand appears to be quite stable and supply is reasonably balanced towards this.
Other Polyolefins
EVA pricing has slipped a little, around €30 / MT in line with LDPE pricing. Polyolefin Elastomers are around rollover as they are typically more closely linked to monomer pricing than the more commoditised grades.
Performance Polymers
The market is predominantly quiet during the summer holiday period with little movement on prices. It is anticipated that things will remain like this until at least September, and there is ample material to satisfy the subdued demand.
The Benzene contract price for August settled at €1,277/t, up by €184/t from July. Availability was reduced as European producers cut outputs and imports from China imports slowed. Demand was also lower so a fairly balanced situation overall.
Pete Tillin
Product Manager – Performance Polymers
Performance Polymer Feedstocks
£/Metric Tonne by month
ABS
Supply
Demand
ABS prices initially softened in July due to the raw material costs reducing but have since firmed up and increased due to the latest uncertainties in the Middle East. The styrene monomer contract price increased by €149/t for August, ACN was up by €26/t, and butadiene down by €50/t. Supply is outstripping demand for the time being, although that situation may change as we move out of the summer holiday period.
PA6
Supply
Demand
Due to the summer holidays the situation for PA6 is one of stability and low demand. There is talk of price rises for September, but it remains to be seen if these are pushed through whilst demand remains weak.
PA66
Supply
Demand
The situation for PA66 is broadly the same as PA6, with hints of cost rises to come in September and beyond.
POM
Supply
Demand
As with many other performance polymers, demand is low and there are no real drivers for any major changes in market prices.
PC
Supply
Demand
The market for PC is fairly quiet due to the summer holidays. No real change is expected this side of the Autumn.
PMMA
Supply
Demand
Demand is low during the summer period and therefore prices are generally rolling over.
PBT
Supply
Demand
A similar situation to most other engineering materials.
Other Engineering Polymers
The situation for most other engineering materials is similar, with market prices broadly stable and demand generally low.
Sustainable Polymers
Recycled Polyolefins has largely seen a rollover in September as there appears to be no further room for reductions on prices that are typically below the cost of production for many recyclers. However, with virgin prices dropping, some of the small increases that were secured in August appear to have been lost. Demand is weak and although some recycling facilities in the UK have closed, there is still very good availability.
Ian Chisnall
Product Manager – Sustainability
Recycled LDPE / LLDPE
Supply
Demand
Recycled LDPE / LLDPE are around rollover, some grades slipping, some higher quality grades staying stronger on pricing.
Recycled HDPE
Supply
Demand
Recycled HDPE has typically rolled over in September, demand remains weak and this may have some impact on pricing.
Recycled PP
Supply
Demand
Recycled PP is typically a rollover in September, but some suppliers are looking at deals to move volume in the face of continued weak demand.
