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Warwickshire – 11th September 2025
Overview
Feedstock rollovers and decreases set the scene for polymer pricing over the summer period.
Geopolitical tensions in June caused an uptick in crude oil prices as tensions between Isreal and Iran escalated into a short, but large-scale conflict.
As a result, oil and Naphtha prices spiked over concerns of the other oil producing countries in the Middle East becoming involved. By the end of the month the situation was more settled and oil prices had fallen back to a similar level to pre-conflict and the Naphtha also price calmed, and this situation drove the rollover in C2 and C3 pricing.
The opposing direction of aromatic feedstock pricing is interesting with a further increase affecting contract Benzene pricing and both SM and Butadiene prices falling. These reductions will put HIPS, GPPS, ABS and other styrenic polymer pricing under downward pressure.
Given that Western Europe is now entering the quieter summer holiday season, in which demand lulls as polymer converters take shutdowns for holidays, there is not any expectation for any initiative to increase prices in either July or August, but the thoughts of many polymer producers will now be focussed on the possibility of some price recovery in September.
Monomer Price Movement
Feedstock
Price per Tonne
Change (contract)
C2 (Ethylene)
£964.87
£0.00
C3 (Propylene)
£862.85
£0.00
SM (Styrene Monomer)
£1,197.79
-£61.21
Benzene
£519.41
£22.10
Butadiene
£782.09
-£42.51
Brent Crude (monthly average)
£359.83
£24.37
Exchange Rates
€
1.18
$
1.36
€/$
1.15
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)
Q1 2025
£647,018
PMI
UK Manufacturing PMI
June
47.7%
UK Output
Manufacturing Index
Q1 2025
101.3%
Sales
New Car Registrations (Y on Y)
June 2025 YoY
6.7%
Sales
Retail Sales (Y on Y)
May 25
104.4%
Labour
Unemployment Rate
Mar 25 – May 25
4.6%
Prices
CPI (Y on Y)
May
3.4%
Prices
RPI (Y on Y)
May
4.3%
Interest Rates
Bank of England Base Rate
June
4.25%
Standard Polymers
July looks relatively flat compared to June for both PE and PP. Ethylene and Propylene Monomers rolled over, a slight surprise as Naphtha values were slightly higher on average in June compared to May but with ample supply, buyers were able to resist increases.
Increases for July were widely discussed towards the end of June as the Middle East conflict escalated but as the oil price dropped so did the hope of price increases. £/€ Exchange rate may influence pricing this month as the weaker Pound should mean increases.
Outlook for the coming months is largely expected to be around rollover but as often seems to be the case recently, there are some factors that could influence pricing, the principal one being the renewed threat of a trade war between USA and EU. This could lead to disrupted flows of material, especially of PE, though the most recent releases of expected reciprocal tariffs suggest that PE may be exempt.
In the very short term, we may see some disruption to logistics in Europe due to truck driver shortages and in the much longer term, European Petrochemicals Industry faces an uncertain future with more announcements of closures announced this month.
Ian Chisnall
Product Manager – Polyolefins
Polyolefins Feedstocks
£/Metric Tonne by month
No Data Found
LDPE
Supply
Demand
LDPE looks generally like a rollover in July; whilst some production is offline, demand is relatively weak so supply and demand remain quite balanced. As LDPE is less subject to imports, not likely to be affected by any potential trade war.
LLDPE
Supply
Demand
LLDPE is around a rollover this month but as demand remains weak and with apparently no significant interruption to the flow of imports, prices may slip a little in the short term. We could see a change in sentiment in August depending on how the trade talks between the EU and USA progress. We may also see some interruptions to supply with shipping issues because of a lack of containers and port congestion.
HDPE
Supply
Demand
HDPE is also around a rollover this month but there is some variability between the grades as Injection grades appeared to be a little bit tighter this month. As with other grades reliant on imports, there are some logistics issues that may affect short term availability in the coming months.
PP
Supply
Demand
PP pricing is around rollover in July but we continue to see prices under a little bit of pressure, particularly for Homopolymer. This is largely being driven by a significant global oversupply of PP with the big expansion of capacity in China not being met be an increase in demand. As China is now a net exported of PP, SE Asian producers are looking for alternative homes for their product.
Although shipping costs are putting upwards pressure on pricing, the weak demand is offsetting this as buyers appear to have the power in the current market. Copolymer grades are more resistant to the reductions with some interruptions to European production with multiple Force Majeures reported this month.
PS
Supply
Demand
PS pricing has fallen roughly in line with the monomer reduction of €72 / MT. The weaker £ means a rough reduction of £35 / MT compared to June. Supply is a little bit disrupted, and imports are less competitive because of increased shipping costs but demand remains weak in key sectors giving balance to supply and demand. European operators continue to work at 60-70% to try and keep the supply restricted as demand typically drops in the summer months.
Other Polyolefins
EVA pricing is rollover in line with monomer. Whilst supply is more limited than other PE grades because of the FM with Total and a recent fire at Versalis, demand is weak and is there is little concern over securing material. Polyolefin Elastomers are a rollover as they are priced quarterly.
Performance Polymers
The UK market for performance polymers remains challenging with low demand, high stock levels and good availability. Imports from Asia remain high, and as a result of these factors, many European producers are continuing to cut production. There was renewed efforts by some manufacturers to try and push small price increases through, however with the ongoing weak demand and global oversupply situation, most polymer costs actually softened.
The June benzene contract settled at €611/t, an increase of €26/t from May, whilst July sees another small increase of €26/t, with the price settling at €637/t.
Pete Tillin
Product Manager – Engineering Polymers
Engineering Polymer Feedstocks
£/Metric Tonne by month
No Data Found
ABS
Supply
Demand
Plentiful stocks/availability coupled with low demand mean that prices remain under downward pressure. In addition, the impending holiday season will only mean that prices may reduce further.
PA6
Supply
Demand
The market remains particularly competitive due to weak demand and high inventories.
PA66
Supply
Demand
PA66 is following the same trend as PA6 with weak demand and an incredibly competitive marketplace.
POM
Supply
Demand
A competitive market with plentiful supply and poor demand means prices are stable at best.
PC
Supply
Demand
The massive surplus of stock and poor demand means that prices continue to slide.
PMMA
Supply
Demand
Weak demand, coupled with reduced production in Europe.
PBT
Supply
Demand
Weak demand, particularly from the E&E sector, 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 has largely seen a rollover in July and in some instances, the weaker £ has led to increases in for imported grades. Whilst demand is still relatively weak, recyclers are resisting any further attempts to push prices down. Several recyclers have gone into administration this year and there is perhaps the realisation that buyers can’t keep expecting recyclers to operate at a loss and continue to produce acceptable quality material.
Ian Chisnall
Product Manager – Sustainability
Recycled LDPE / LLDPE
Supply
Demand
Recycled LDPE / LLDPE is mostly rolling over in July in line with Prime prices. Some imports are up in price due to the weaker £.
Recycled HDPE
Supply
Demand
Recycled HDPE has typically rolled over in July, market appears to be relatively stable.
Recycled PP
Supply
Demand
Recycled PP has seen around rollover in July. Some signs of improved demand in construction but overall market appears to be reasonably balanced. Prices for high quality natural PP continue to be strong though the market does appear to have plateaued.
