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Producers are struggling in the wave of industry consolidation in order to gain more living space and profits, and respond to the increasing number of shut-down factories in the market and the sharp reduction in production.
At present, there has been signs of a decline in demand after the supply of raw materials reaches a better balance. Last month, European imports of raw materials also had certain restrictions, further limiting purchase options. Compared with the active situation last month, most of the polymer demand for this month was lower than the level before demand decline. As a result, buyers have become more concerned about market dynamics to ensure that the tight supply situation is making a comeback.
In view of the ever-increasing cost pressure between upstream and downstream, the highest registered polyolefins rose by €100/ton in February, while the price of PVC rose by €50/ton. Although the cost of SM declined, polystyrene dealers said that prices and profits have improved.
Accelerating Price Increases of Polyvinyl Chloride and Other Polymer Products in Europe
Due to the impact of the thermoplastic standards, European buyers faced a market with further rising prices in February to compensate for the tightening of profits caused by rising raw material costs.