Overview
Sombre market sentiments from the summer holiday period persist into the autumn.
Whilst the months of July and August are typically quiet in Western Europe as seasonal holidays take effect, this summer appeared to be quieter than ever with sellers perhaps trying to avoid conversations with buyers as availability across most polymer grades only appeared to increase.
The small increase in C2 (ethylene) and rollover on C3 (propylene) did little to abate the soft downwards trajectory of prices that has been evident since March of this year. Other polymer feedstocks, along with crude oil, witnessed a further step down in price which reinforced deflationary pressures on their derivative polymers.
More locally, here in the UK, manufacturing output figures were depressed in July which in turn has intensified competition for available volumes. At least for now, nothing looks likely to change the challenging market fundamentals for sellers.
Monomer Price Movement
Feedstock
Price per Tonne
Change (contract)
C2 (Ethylene)
£982.49
£4.33
C3 (Propylene)
£878.62
£0.00
SM (Styrene Monomer)
£1,219.68
-£39.82
Benzene
£528.90
-£64.92
Butadiene
£796.38
-£12.98
Brent Crude (monthly average)
£359.83
-£11.44
Exchange Rates
€
1.16
$
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)
Q1 2025
£647,018
PMI
UK Manufacturing PMI
August
47%
UK Output
Manufacturing Index
Q2 2025
101.8%
Sales
New Car Registrations (Y on Y)
Aug 2025 YoY
-2.0%
Sales
Retail Sales (Y on Y)
July 25
106.2%
Labour
Unemployment Rate
Apr 25 – Jun 25
4.7%
Prices
CPI (Y on Y)
July
3.8%
Prices
RPI (Y on Y)
July
4.8%
Interest Rates
Bank of England Base Rate
August
4%
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 European Petrochemical industry 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
No Data Found
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 UK market for performance polymers continues to be very subdued, with low demand, and high stock levels. Imports from Asia remain high, and as a result of these factors, many European producers continue to cut production during the holiday period. There was renewed efforts by some manufacturers to try and push small price increases through, however with the ongoing weak demand and the global oversupply situation, most polymer costs actually softened yet again.
The August benzene contract settled at €653/t, an increase of €16/t from July, whilst September sees a decrease of €75/t, with the price settling at €578/t.
Pete Tillin
Product Manager – Engineering Polymers
Engineering Polymer Feedstocks
£/Metric Tonne by month
No Data Found
ABS
Supply
Demand
Plentiful stocks & good availability, coupled with low demand mean that prices remain under downward pressure. The styrene monomer price has again declined by a further €46/t in September and this may well be reflected in ABS pricing, despite a small potential uplift in demand during September.
PA6
Supply
Demand
The market remains particularly competitive due to weak demand and high inventories, and the holiday season has meant even lower demand and lower levels of supply. Maybe September will bring a small uplift in demand but not expected to be much.
PA66
Supply
Demand
PA66 continues to follow the same trend as PA6 with weak demand and an incredibly competitive marketplace. The annual summer shutdowns have not helped demand or supply, but just maybe September might pick up a little.
POM
Supply
Demand
A competitive market with plentiful supply and poor demand means prices are stable at best. The vacation season has meant even lower demand and supply, but perhaps September will see a small improvement.
PC
Supply
Demand
The surplus of stock and poor demand means that prices continue to slide, and the holiday period has meant that little improvement has been seen. Maybe September offers a glimmer of hope, but no dramatic changes are expected.
PMMA
Supply
Demand
Weak demand, coupled with reduced production in Europe & high levels of imports equals more downwards price pressure.
PBT
Supply
Demand
Weak demand, and oversupply 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 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.
