
Price Stability and Increases:
- Polystyrene: Producers have proposed price increases of €50-55 per tonne, following a €36 per tonne rise in the styrene monomer reference price for January.
- High-Density Polyethylene (HDPE): While most polymer grades have maintained stable pricing, HDPE Natural has seen a significant surge of 13%.
Factors Contributing to Price Trends:
- Feedstock Costs: Rising costs of feedstocks, process chemicals, utilities, logistics, and maintenance have compelled producers to implement price increases. For instance, Kuraray Co., Ltd. announced a price hike of $0.33 per kilogram for its elastomer products, effective February 1, 2025.
- Supply Chain Dynamics: Scheduled and unscheduled production disruptions, along with projected higher feedstock costs, are key factors contributing to the upward trend in resin prices.
- Logistics and Energy Costs: Increased logistics expenses, high liquid feedstock costs, and rising gas prices are exerting inflationary pressures on polyolefin prices.
Market Outlook:
Entering 2025, the market for major commodity and volume resins is generally favorable for buyers, with prices having dropped for nearly all volume resins toward the end of 2024. This trend is attributed to lackluster demand, lower key feedstock costs, and decreased demand and pricing of exports.
In summary, while certain segments like polystyrene and HDPE are experiencing price increases due to rising feedstock and operational costs, the overall polyolefin market remains relatively stable. However, ongoing supply chain challenges and energy cost fluctuations may influence future pricing dynamics.
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