Competitive imports increase pressure on local PE in Europe
by ChemOrbis Editorial Team - content@chemorbis.com
In Europe, PE sellers had to concede to discounts from initial October levels amidst the lack of supply issues and comfortable stocks on the side of buyers and sellers. After October deals were wrapped up, trading in the PE market has been slow this week as players were waiting to hear November ethylene contracts, which settled today at a rollover.
Expectations for November are now widely calling for a softer trend in the PE market depending on supply-demand factors while competitive import offers are also deemed as another pressure point on the market.
In Northwest Europe, several deals have been concluded this week for non-European origins well below the local ranges.
Qatari LDPE film was dealt at €1180/ton DDP Switzerland, 60 days deferred payment basis, standing €80/ton below the low end of the European range in the local market.
LLDPE for the same origin was also traded €40-50/ton below the local LLDPE ranges at €1140/ton DDP Switzerland, 60 days.
A deal for Brazilian HDPE film, meanwhile, was reported at €80/ton below the low end of the local range at €1050/ton with the same terms.
A buyer concluding the deals at the aforementioned levels affirmed, “We skipped our monthly purchases from European producers this month; not only because we are receiving our previously ordered quotas but also because we have made fresh purchases for LDPE, LLDPE and HDPE from the import market with delivery in December at quite competitive levels compared to the local prices.”
Expectations for November are now widely calling for a softer trend in the PE market depending on supply-demand factors while competitive import offers are also deemed as another pressure point on the market.
In Northwest Europe, several deals have been concluded this week for non-European origins well below the local ranges.
Qatari LDPE film was dealt at €1180/ton DDP Switzerland, 60 days deferred payment basis, standing €80/ton below the low end of the European range in the local market.
LLDPE for the same origin was also traded €40-50/ton below the local LLDPE ranges at €1140/ton DDP Switzerland, 60 days.
A deal for Brazilian HDPE film, meanwhile, was reported at €80/ton below the low end of the local range at €1050/ton with the same terms.
A buyer concluding the deals at the aforementioned levels affirmed, “We skipped our monthly purchases from European producers this month; not only because we are receiving our previously ordered quotas but also because we have made fresh purchases for LDPE, LLDPE and HDPE from the import market with delivery in December at quite competitive levels compared to the local prices.”
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