Sellers plan steep increases next month, as only PS and PE rose in January

There has been wide variation in pricing movements for the different classes of standard thermoplastics this month. Polystyrene saw the sharpest rise with prices closing around 8% higher than in December. LDPE and LLDPE rose nearly 3%, while HDPE achieved hikes of almost 5%. PP and PET prices were largely rolled over from December, while PVC prices fell by 3%.

Availability was generally tighter and inventories lower across all product groups this month after producers offloaded surplus material by making ‘special deals’ in December. Polymer demand was better than expected this month, with converters returning to the market to replenish their stock levels. There was also an element of pre-buying taking place, but producers moved to deter this by refusing to accept excessive new orders at current prices.

Steep price increases are on the cards this month with planned price hikes announced for all polymer classes. Rising feedstock and energy costs are the main price drivers.