Plastribution’s Polymer Price Know-How: July 2025

Plastribution’s July 2025 Polymer Price Know How discusses the effects of the recent global events and the affect on the polymer market. A brief but intense conflict between Israel and Iran in June, global oil and Naphtha prices surged amid fears of wider disruption in the Middle East. Although the situation stabilised by month-end, the volatility left its mark on polymer feedstock pricing, with rollover trends in ethylene and propylene and contrasting movements in aromatics. As Western Europe enters its summer slowdown, the market remains subdued, with eyes now turning to September for potential price recovery

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

Exchange Rates

€- 1.18
$- 1.36
€/$- 1.15

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.

Polyolefins Feedstocks

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.

Engineering Polymer Feedstocks

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.

Recycled LDPE / LLDPE

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 PP

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.

Recycled HDPE

Recycled HDPE has typically rolled over in July, market appears to be relatively stable.