Plastribution’s Polymer Price Know-How: January 2025
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Plastribution’s January Polymer Price Know-How highlights a market with inflationary pressures and a stronger USD, as global crude oil prices continue to rise. While ample supply kept polymer prices steady at the start of the year, the outlook for February suggests potential increases in PE and PP costs, driven by expected hikes in C2 and C3 monomer prices. European styrenic polymers have already seen price rises, and higher import costs due to currency shifts and reduced availability of Deep Sea imports are adding to the complexity of the market. As converters navigate weak demand and financial constraints, the first quarter of 2025 promises a challenging and uncertain landscape.
What will increase feedstock costs and a stronger USD mean for polymer prices?
Activity in the UK polymer market came to an early close in December, with most transactional activity ending by the middle of the month. With plentiful supply across the full range of polymers, there was no real appetite for pre-buying. Subsequently, January has got off to a typically slow start, with the expectation that plastic converters will meet their needs on a day-to-day basis.
In the background, inflationary pressures continue to mount with both a gradual uptick in global crude oil prices and a fall in the value of the GBP against other major currencies which results from concerns about the state of the UK economy.
If the increase in crude oil price is maintained throughout January, then it is likely that C2 and C3 contract prices will increase for February, resulting in price increase nominations for PE and PP. The increase in SM pricing has already resulted in price increases for January shipments of styrenic polymers from European producers.
Exchange Rates
€- 1.21
$- 1.26
€/$- 1.05
Polyolefins
We start the New Year with what appears to be a rollover or close to it. Ethylene C2 and Propylene C3 both rolled over and the polymers appear to be following suit. With PE, there have been some attempts to increase prices as local producers look to restore margins that were significantly eroded in the second half of last year. This has seen a mixed response with LDPE perhaps able to gain a little ground as there are some interruptions in supply.
Deep Sea imports are also facing cost pressures as the US$ has strengthened against the £. The deals possible at the end of 2024 have dried up. PP is more likely to see a rollover as demand continues to be weak in key sectors and supply, whilst slightly reduced from lower imports, is ample.
The outlook for the first quarter is for more attempts at price increases. Imports are more expensive, and US producers are looking to raise prices for exports. We are also expecting some planned shutdowns in Europe, limiting availability. We face some uncertainty with the prospect of tariffs imposed by the USA leading to increased tariffs on US exports of polymers, mainly LLDPE and HDPE. Freight is expected to be a little bit bumpy in pricing this year but the possibility of port worker strike action in the USA limiting exports has been successfully resolved.
Styrenics
- Contract EU Styrene rises
- Styrene Monomer has increased by €36/T, settling at €1444/T.
- EU GPPS and HIPS increased by €50/T and ABS rolled for December.
GPPS/HIPS/ABS supply chains are running at reduced rates, no doubt triggered by low demand. Converters and distributors are running inventory at very low levels due to financial pressures. Therefore, any adjustments in polymer prices are likely to be passed on immediately.
Engineering Polymers
The start of the new year has been slow, demand remains extremely poor across most materials and market sectors. Inventories are heavily stocked, and prices continue to fall for most polymers apart from PMMA. The January benzene contract settled €45/Mt higher than December at €857/Mt.
Sustainable Polymers
Recycled Polyolefins have mostly rolled over in January alongside prime prices. Some recent plant closures in the UK and Europe are helping to bolster pricing at the lower levels as supply is slightly restricted. Buyers are facing the realisation that they can’t keep buying at a lower-than-cost level and expect their suppliers to remain in business. New legislation is expected to keep prices stronger in 2025.
Recycled LDPE / LLDPE
Recycled LDPE / LLDPE has mostly rolled over in January. High-quality grades continue to see strong demand and restricted availability leading to prices above virgin.
Lower quality grades are seeing better pricing than in recent months as supply is slightly limited after extended Christmas shutdowns.
Recycled HDPE
Recycled HDPE is typically rollover and is seeing some slight increases at the lower end with supply slightly restricted.
Natural grades for consumer packaging continue to see significant premiums over virgin prices.
Recycled PP
Recycled PP is rolling over in January and as with recycled PE, the very lowest prices offered last year are gone as recyclers need to return to making a margin.
Natural grades continue to command strong premiums over virgin, particularly in consumer packaging applications.
Price Know-How: January 2025 Full Report
Visit the Price Know-How website to read the January 2025 update, which details each market segment and material group produced by Plastribution’s expert product managers.
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Price Know-How, a decade-long trusted resource in the industry, provides essential updates on polymer pricing and market dynamics. This report is crafted by Plastribution, a leading polymer distributor, in collaboration with Plastics Information Europe.
Price Know-How is tailored specifically for the UK polymer industry, unlike many other price reports. They do all the currency conversions, so you don’t need to!
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