Price Reports May 2025

The following information is provided by Plastics Information Europe.  For more than 35 years, PIE has been an invaluable source of information for European plastics industry decision makers - a quick, yet in-depth look at the development of plastics markets and polymer prices. Available online 24/7 and as a printed newsletter twice a month. To read entire versions of the following reports, go to www.pieweb.com and sign up for a 48-hour free trial!

  Standard thermoplastics May 2025: Monomer contract sets downward trend / Sufficient material and sluggish demand / Will prices stabilise in June?

PE: The reduction in ethylene (down EUR 70/t) predefined the direction for the polymer. Although, at the beginning of the month, most producers held back when it came to factoring in the lower costs in full, there were no producers left at the end of the month who could avoid doing precisely that. European production was still operating with cutbacks in output. Material was sufficiently available, particularly as imports from the US and Middle East were in plentiful supply. Demand settled down at a stable but low level. New orders were still rare. The rollover of the ethylene feedstock could stabilise prices in June. However, abundant imports plus the need to catch up on price reductions that did not materialise in April could awaken some converters’ desire to negotiate. On the other side are European producers’ shattered margins. Also, the seasonal stock-reducing measures before the summer holidays are likely to be called into question this year.

PP: Prices for PP are back at the level of January 2024. However, in view of the almost non-existent demand from the customer industries, there is no real joy. In May, producers again felt compelled to pass most of the drop in propylene costs (down by EUR 65/t) on to their customers. Unplanned downtime and plant curtailments reduced the output of domestic production. For June as well, no major price changes are expected as a result of the rollover for the precursor, C3. In view of the favourable alternatives on the market, suppliers may be prepared to make moderate price concessions. It remains to be seen whether this will become a widespread trend. Ordering activity, however, is expected to remain at a low level. Only momentum from the sanitation industry could increase the orders of a few processors.

PVC: The EUR 70/t drop in the ethylene contract should also have led to a corresponding reduction of about EUR 35/t in PVC prices, which did not happen due to tight supply in the S- and E-PVC markets. The price reduction passed on was thus less than the pro-rata decline in costs. The sector remains under pressure, with orders often secured only after bitter price battles – and no improvement expected in 2025. Despite the ongoing production curtailments and a number of unscheduled plant outages, supply was sufficient to meet demand at all times. In addition, imports from Asia developed into a major issue. Given the rollover for ethylene for June, no major movement is expected in PVC prices for the month to come. Suppliers are likely to call for increases in a bid to improve their margins. Converters too could declare a need for improvement. 

Styrenics: Demand for styrenics remained weak in May. In the absence of other stimuli, the prices for PS, EPS, and ABS essentially followed the cost reduction. Following the decline in the SM reference (down EUR 40/t), prices for PS quickly followed suit, and to the same extent. ABS saw a somewhat wider range of agreements. Discounts did not always reach the full extent of the reduction in composite costs (SM down EUR 40/t, butadiene down EUR 60/t, ACN down EUR 104/t). No significant revival in demand is expected for June, especially as the final month of the second quarter again brings with it public holidays and long weekends – and then seamlessly leads into the summer-holiday period. As a result, styrenics prices are once again expected to largely follow the cost trend and decline further. The styrene reference contract again declined in June (down EUR 47/t), and the composite costs for ABS (SM down EUR 47/t; butadiene down EUR 50/t; ACN down EUR 24/t) also trended further downwards.

PET: The situation on the European PET market in May was unclear. While the end markets still generated little momentum, the supply side became increasingly agitated. In the case of paraxylene (PX), players had still not managed to agree on the reference price for April (!) by the end of May. The May price has thus similarly not been fixed. While import offers were available, they appeared considerably more uncertain than before. The spot market came more or less to a standstill. Purchasers were thus forced to focus more on supplies on the domestic market from European production, which was operating at its lower capacity limit. Producers gave preference to major purchasers on account of the volume guarantees, with price reductions too. Moderate increases could be seen again in June. The extremely unclear situation regarding PX is hanging over everything like the sword of Damocles. The result could be either reductions, hikes or rollovers.

For more than 35 years, PIE has been an invaluable source of information for European plastics industry decision makers - a quick, yet in-depth look at the development of plastics markets and polymer prices. Available online 24/7 and as a printed newsletter twice a month. To read the entire report, go to www.ki.de and sign up for a 48-hour free trial!

  Engineering thermoplastics May 2025: Product surplus governs the price with nearly all types / Demand still weak / No improvement expected in June either

Nearly all engineering thermoplastics were again under price pressure in May. Alongside the weak demand came the effect of cheap imports from Asia. Despite the fact that European production was still operating with cutbacks in output, the market was still well supplied. Demand continued to bob along. Converters from the automotive industry reported only minimum orders for Europe. The only glimmer of light was the building sector, although it was unable to compensate for the malaise in the automotive industry in terms of volume. 

In June, nothing is likely to change as regards the overall picture – the slight surplus might, together with the weak demand, continue to put considerable pressure on prices. Producers are once again expected to try and place volume incentives via the price. On top of that, producers are offering higher annual bonuses to an increased extent. Purchasing by the automotive industry will remain at a low level, and some converters are now talking of a machine utilisation rate of only 60%-70%. 

For more than 35 years, PIE has been an invaluable source of information for European plastics industry decision makers - a quick, yet in-depth look at the development of plastics markets and polymer prices. Available online 24/7 and as a printed newsletter twice a month. To read the entire report, go to www.ki.de and sign up for a 48-hour free trial!

 Polyurethane feedstocks May 2025: Trade dispute pushes large quantities of inexpensive material to Europe / Prices continue to trend lower / Demand remains weak

In most cases, the trade dispute between the US and China resulted in significantly more material on the European market. Chinese providers diverted a number of ships originally destined for the US to Europe. The PIE panel reported very competitive rates for both MDI and TDI, which put strong pressure on European prices.

However, with the recently announced breather in the tariff dispute, larger volumes are likely to flow into the US again. This is expected to normalise supply on the European market.

Overall, there was little change in the weak demand. The customer industries of comfort, automotive, and furniture were unable to provide momentum. If anything, construction showed a twitch upwards here and there. For the most part, the order books of processors are currently only two thirds full.

Polyols suffered from the discounts on precursors, which affected products for flexible foams in particular. In the meantime, a trough seems to have been reached, at least for the standard grades. European producers of both flexible and solid polyols cannot and do not want to keep up with the prices dictated by imports in the long term and would rather throttle their plants further or even shut them down.

For more than 35 years, PIE has been an invaluable source of information for European plastics industry decision makers - a quick, yet in-depth look at the development of plastics markets and polymer prices. Available online 24/7 and as a printed newsletter twice a month. To read the entire report, go to www.ki.de and sign up for a 48-hour free trial!

  Composites/GRP May 2025: Downward price trend for resins, glass fibre continues / Users, converters show restraint / Imports trigger tendency towards oversupply

PIE panellists reported that the composites market was characterised by “extreme restraint” in May. Since the main precursor, styrene, fell by EUR 40/t again, part of this price drop was also passed on to the medium reactive ortho resins. A number of producers also attempted to sell volumes on the market through favourably priced offers. Added to this, came competition from imports. The low level of demand was met at all times. 

Converters have ample space in their order books, but momentum is lacking. Although the styrene contract went down by a further EUR 47/t in June, prompting converters to speculate about prices coming down still further, European production is still running at reduced capacity. The available volumes, together with imports, are currently generating a slight oversupply.

Glass fibres also saw slight price reductions due to a somewhat oversupplied market. Producers want to put an end to the downward price movement over the weeks to come, while converters, by contrast, see potential for more substantial price reductions than those seen recently. With market conditions largely unchanged, the actual development is likely to fall somewhere in between.

For more than 35 years, PIE has been an invaluable source of information for European plastics industry decision makers - a quick, yet in-depth look at the development of plastics markets and polymer prices. Available online 24/7 and as a printed newsletter twice a month. To read the entire report, go to www.ki.de and sign up for a 48-hour free trial!

 Standard recyclate May 2025: Heterogenous price development / Construction, logistics sectors pick up slightly / Off-spec material, imports generate pressure

In a largely balanced market, recyclers of PE film grades were often able to price in the increased purchase costs. They got much less out of coloured grades than natural and translucent ones. More significant premiums would have risked competition from off-spec material and diminished the attractiveness of recyclates. Production was significantly reduced in order not to jeopardise the market’s balance. Contracts were still fulfilled at all times. Demand was stable but remained well below normal levels. Some processors announced they would reduce production shifts towards the end of the month.

Virgin material prices are expected to trend severely downwards. A further round of hikes for recyclate prices is therefore considered rather unlikely by the panel. The situation is different for PET and PET flakes – as demand for those is likely to increase further, recyclers will be able to obtain further premiums. However, a good half of the panellists expect imports to increase, which is why said premiums are likely to broadly remain within reasonable limits. Demand is developing in the same way as before, that is, unevenly. Most processors will be satisfied if their order books reflect a certain stability. Only purchases from the beverage industry are likely to pick up.

For more than 35 years, PIE has been an invaluable source of information for European plastics industry decision makers - a quick, yet in-depth look at the development of plastics markets and polymer prices. Available online 24/7 and as a printed newsletter twice a month. To read the entire report, go to www.ki.de and sign up for a 48-hour free trial!

 Engineering recyclate May 2025: Prices still under pressure / Demand remains weak / No change expected in June

The market for engineering recyclate in May was still suffering a significant slump in demand. Orders from the automotive sector were again in short supply. In other sectors, too, most converters were ordering only what was deemed necessary for the near future. Because there were no positive impulses anywhere else, either, prices for engineering recyclates continued their downward trend. rPP compounds were the only exception.

Nothing is likely to change in June regarding the basic direction that prices will move, because the parameters will likely remain the same – the sluggish demand and a still balanced-long market should make it easier for converters to attain further price concessions.

For more than 35 years, PIE has been an invaluable source of information for European plastics industry decision makers - a quick, yet in-depth look at the development of plastics markets and polymer prices. Available online 24/7 and as a printed newsletter twice a month. To read the entire report, go to www.ki.de and sign up for a 48-hour free trial!