Overview
Producers of standard polymers push for increases above contract feedstock
It is difficult not to notice the financial plight of global polymer producers, with further announcements of losses, closes, sales of non-performing assets and job cuts, and now it looks as if producers are taking the bold step of increasing prices in a market that is not necessarily demand led.
Notifications of +50€ / £43 per tonne from some producers for many PE grades were not well received with converters, and in response concessions have been made with typically about half of this hike currently being applied to LLDPE and HDPE. LDPE was an exception, and tight supply has enabled producers to adopt a more robust approach. The concessions will likely prove prudent as converter demand is likely to remain stable, rather than significantly diminished by buyers who elect to draw their requirements from inventory in protest..
The hefty Benzene and SM costs will also result in some hefty increases for derivative polymers.
Whilst February is a short month, it will likely be defining in terms of the first half of the year and given the economics of producers there is likely to be a further push towards higher prices which no doubt will meet with resistance from plastic processors.
Monomer Price Movement
Feedstock
Price per Tonne
Change (contract)
C2 (Ethylene)
£950.55
£13.02
C3 (Propylene)
£837.70
£13.02
SM (Styrene Monomer)
£1,171.91
£104.17
Benzene
£685.79
£112.85
Butadiene
£633.70
£26.04
Brent Crude (monthly average)
£357.40
£11.21
Exchange Rates
€
1.15
$
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)
Q3 2025
£705,603
PMI
UK Manufacturing PMI
January
51.8
UK Output
Manufacturing Index
Q3 2025
99.8%
Sales
Retail Sales (Y on Y)
December25
105.3%
Labour
Unemployment Rate
Sept 25 – Nov 25
5.1%
Prices
CPI (Y on Y)
December
3.4%
Prices
RPI (Y on Y)
December
4.2
Interest Rates
Bank of England Base Rate
February
3.75%
Standard Polymers
February has seen a general uptick in pricing on the back of monomer increases of €15 / MT for both Ethylene and Propylene. Increases vary from the monomer increase to +€50 depending on the product and the starting point. LDPE continues to show strength due to SABIC FM and restricted availability in Europe and is at the top end of these price increases.
The rest of the PE family has also gone with more than monomer and HDPE Injection appears to be a little bit tight and has gained almost as much. HDPE Blow Moulding & Film and LLDPE are showing more modest increases of around €25 / MT.
PP continues to be a little bit weaker than PE but on the back of a rollover in January it is continuing a slight price recovery in February around the monomer increase.
Polystyrene has seen a big increase of €120 / MT on the back of the monomer surprising many with a substantial increase.
Prices are expected to stay relatively strong in the coming months. Spot naphtha is trading at the highest level for 4-5 months and exporters of PE from USA are looking to raise their prices as they see stronger domestic pricing. We’re also in turnaround season in Europe with many plants undergoing scheduled maintenance between now and May. Market is expected to be a little tighter and there is hope that we will see some recovery in the manufacturing sector driving a demand improvement.
Ian Chisnall
Product Manager – Polyolefins
Polyolefins Feedstocks
£/Metric Tonne by month
No Data Found
LDPE
Supply
Demand
LDPE market continues to be tight and many sellers are reporting strong order books and are looking to raise prices accordingly. Whilst the SABIC plant is expected to be back online in April, the market is not expected to be back in a balanced position until well into the summer.
LLDPE
Supply
Demand
LLDPE is up slightly in February as demand has improved slightly and there is some concern about availability in the near term. The recent cold snap around the Gulf Coast caused disruption to shipping from Houston and there are delays reported. There is a lot of industry talk about US producers looking to improve pricing as they see global demand improving after the Chinese Lunar New Year.
HDPE
Supply
Demand
HDPE is a similar story to LLDPE with increases reported. HD Injection is seeing the strongest increases closer to €40 / MT as demand appears relatively good. Blow Moulding and Film are increasing €20-25 as availability and demand are more closely matched.
PP
Supply
Demand
PP pricing is a little bit up after a long period of very flat pricing. Increasing freight rates from Asia and stronger demand from other markets for Middle Eastern grades are helping to push prices up. Whilst market demand is still a little muted, there are signs of recovery in key sectors and construction is expected to pick up soon. European production is limited either through reduced operating rates or because of planned maintenances. This is giving more confidence to push price increases through.
PS
Supply
Demand
PS pricing has soared along with the monomer at €120 / MT, and some are asking for a little more to recover the margin lost over the last 6-12 months. It is a slightly strange market now as demand is still quite weak, but producers have no choice but to pass these increases through. Market is helped a little by restricted imports.
Other Polyolefins
EVA pricing is up around €25-30 / MT. Availability is a bit restricted with FM at Total and monomer restrictions affecting other suppliers. Most specialist Polyolefins such as POP and POE are typically rollover having agreed quarterly pricing in January.
Performance Polymers
February has brought quite a few price increase announcements, but it remains to be seen how successful these will be, as the market is still subdued with weak demand, high inventories & good availability.
Benzene prices are now at the highest level in nearly a year, with February settling at €790/t, up €130/t from January. The increase was due to the rise in oil prices.
Pete Tillin
Product Manager – Performance Polymers
Performance Polymer Feedstocks
£/Metric Tonne by month
No Data Found
ABS
Supply
Demand
Higher composite costs will push up ABS prices. The styrene monomer contract price increased by €120/t in February, and ACN was also up by €17/t, and butadiene up €30/t. Demand however remains low and stocks high, but European producers will hope that the additional anti-dumping duties due to be announced middle of February will start to help prices increase.
PA6
Supply
Demand
Some price increases have been announced, but the market remains competitive due to weak demand and high inventories. No upturn in demand is expected in the short term.
PA66
Supply
Demand
The situation for PA66 continues to follow the same trend as PA6 with weak demand, good availability, and an incredibly competitive market. Some producers are looking to push through price rises but the chances of them sticking are low.
POM
Supply
Demand
A continued competitive market with high supply levels and low demand. However there is still a possibility of more stable prices, depending on the level of cheaper imports, particularly from Asia.
PC
Supply
Demand
Price increases have been announced, but the prospect of them actually being implemented either partly or in full are low, due to continued poor demand.
PMMA
Supply
Demand
Demand seems to have picked up slightly during February which would then suggest prices have also levelled out.
PBT
Supply
Demand
Weak demand and oversupply means prices remain lower than producers would like.
Other Engineering Polymers
The current situation for most other engineering materials is similar, with weak demand & plentiful supply.
Sustainable Polymers
Recycled Polyolefins have seen very modest increases on the back of the prime market shifting up a little.
Ian Chisnall
Product Manager – Sustainability
Recycled LDPE / LLDPE
Supply
Demand
Recycled LDPE / LLDPE has seen modest increases in February as virgin LDPE is a little tight and this has reopened opportunities for recycled in some applications.
Recycled HDPE
Supply
Demand
Recycled HDPE has risen a little in February, following the trend in Prime. HD Injection is particularly sought after, especially easily coloured grades. Quality BM grades are still in demand but some way off the peak of recent years
Recycled PP
Supply
Demand
Recycled PP is increasing slightly or rolling over depending on the starting point and the quality of the grade. Demand is up a little but it remains a challenging market.
