Competitive local PE prices emerge in Italy amidst incoming imports

More import PE cargoes found their way to Italy over the past week amidst the firming PE trend in May. In response to incoming import cargoes, more competitive offers emerged in the local market with respect to initial May levels.

US HDPE blow moulding offers for May are quoted at €1340-1350/ton DDP, including 6.5% customs duty, 60 days. A compounder bought Iranian HDPE blow moulding at €1300/ton DDP, including 6.5% customs duty, 60 days. The buyer commented, “Availability is good for import cargoes from the Middle East and Iran. Supply is short for LDPE in the local market while it’s in balance with demand for other products. We don’t exclude the possibility of a reversal in the trend in the medium term.”

A trader is giving Iranian HDPE film offers for new shipments with increases of €20-30/ton from last month at €1320-1330/ton DDP, including 6.5% customs duty, 60 days. A packaging producer bought Saudi Arabian HDPE film at €1330/ton with the same terms. For US cargoes, May HDPE film offers were quoted at €1350/ton DDP, 60 days. A buyer reported that prices for this origin are up by €50/ton from last month, commenting that there is a notable difference between prices for European and non-European origins.

In the local market, spot PE prices were quoted at €1400-1470/ton for LDPE, at €1340-1420/ton for LLDPE and at €1350-1480/ton for HDPE FD Italy, 60 days towards the end of last week. This week, however, a few buyers bought Central European and locally-held Iranian LDPE film at relatively lower levels of €1380/ton on an FD basis. For LLDPE film, locally-held Saudi Arabian cargoes were offered at more competitive levels of €1300-1320/ton with the same terms.