PE: Imports countered the plant cutbacks instigated by European polyethylene producers. Throughout August, a slight surplus prevailed on the market. Because of the weak call-offs in the holiday period, only few producers endeavoured to keep prices stable. The fall of EUR 10/t in the ethylene contract in August became the guideline for the market as a whole. The production cutbacks failed to help. The competition from aggressively priced imports exerted massive pressure on European producers, which is why some suppliers emphasised a willingness to engage in additional negotiations. In September, producers are expected to try and restore their eroded margins. They are likely to insist on passing through at least the higher ethylene costs (EUR 5/t) and may even push for additional price increases. Converters, however, are expected to counter this. In addition, the PIE price panel does not anticipate any improvement in their order-book situation in the near future. This means that demand is likely to remain at a low level.
PP: Prices for polypropylene fell again in August 2025 after largely moving sideways in the two previous months. Initial attempts by producers to keep prices stable once more did not bear fruit. In August, the fall in the propylene reference (down by EUR 10/t) very quickly served as a guideline for determining the discount level. Often, however, not even that was enough – for PP homopolymer and injection moulding types in particular, the discounts could also be somewhat higher. The reason for this lay in the very weak demand. Purchasing needs that were already low were further dampened by the lull in orders due to the summer holiday season. Even recent problems with production facilities did not affect the ample supply situation. Aggressively priced imports entered the European market in large volumes. There are only a few signs of change for September. Now that the C3 contract has been fixed at a rollover, PP prices are also likely to trend sideways. As long as imports continue to flow, there should be more than enough material on the market. Processors’ order books also remain sparsely filled despite the end of the summer holiday season.
PVC: In August, PVC prices remained virtually unchanged for a further month. While numerous transactions were based on the reduction in the cost of ethylene (down EUR 10/t), a number of producers lowered their prices still further as part of special deals. Supply exceeded demand, even if only slightly. The largest customer, the construction industry, remained weak. Call-offs from the automotive segment were similarly few and far between. The main holiday season further dampened demand. Little change is expected in September. The slight uptick for ethylene (up EUR 5/t) in the month could provide some measure of upward momentum for PVC prices. However, there is no evidence of any stimuli that would noticeably improve demand by the end of the year. Only in the case of exports could the latest developments in India have an impact – European producers are exempt from the antidumping duties that the country has imposed on PVC imports, including those from the US and China. At least one supplier looks to be using this situation to “restore” their ailing margins somewhat and has already announced price increases.
Styrenics: In August, styrenics prices trended downwards for the fifth month in a row. Prices came under pressure due to a further drop in the styrene reference contract (down EUR 35/t) and already weak demand, which was further dampened by the peak holiday season. However, margins for many producers have become so severely eroded that they balked at passing on the cost reduction in full. This approach proved largely successful for polystyrene, partially so for ABS, and only rarely for EPS. All prices for PS, EPS, and ABS are now at their lowest level since February 2021. As a result, they have also fallen below the price levels established following the excesses of 2021 and 2022. However, the end of the line has not yet been reached. Styrenics prices are likely to decline again in September, following another decrease in the styrene contract price in the final month of the third quarter (down EUR 46/t). Processors are likely to insist on further reductions because, while demand is expected to pick up somewhat as the holiday season draws to a close, it is expected to remain far below the previous normal levels.
PET: As anticipated, the European PET market remained sluggish in August 2025. Activity was highly subdued, and European producers could not even remotely think of raising prices. At the same time, they had no reason to implement significant reductions either, despite the availability of favourably priced imports. Lowering quotations further would have done little to revive the weak demand. This was evident from the fact that, aside from occasional special offers, import warehouses remained generally full – clear evidence of a lack of meaningful purchasing activity. In the end, the modest price increases seen in July were ultimately reversed, as forecast by PIE. The PX reference for August was fixed surprisingly early, with a slight reduction of EUR 10/t. Once again, no major momentum is in sight. Either a rollover or further marginal reductions can be expected.
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