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Discounts pass on April PE deals in Europe

  • 06/04/2017 (12:53)
Demand in the European PE markets has cooled off as buyers toned down their bullish expectations to some extent. On the contrary, some PE sellers attempted to raise their contract prices for April regardless of the stable ethylene contract settlements.

A West European producer announced increases of €20/ton on LDPE and HDPE prices while applying €30/ton increases on LLDPE due to their tighter supply. A producer source said, “We may revise down our April offers depending on demand during the month. Meanwhile, we are offering rollovers for spot allocations. Trading activity is limited for now and it is likely to remain so due to the Easter holidays. Buyers are limiting their purchases given the existence of bearish expectations.”

Traders are giving slight discounts to match the market sentiment, despite some producers’ firm stance. An Italian trader noted, “Any possible hike attempts will be unworkable this month given weak market conditions. We expect to see small downward adjustments on HDPE inj. given comfortable supplies.”

Well prepared buyers and sellers, who planned ahead for maintenance shutdowns at many crackers across the region, is creating downward pressure on the market. A buyer in Italy commented, “We received initial April offers with decreases of €20/ton, but we are not planning to buy for now as we still have sufficient stocks. Additionally, our end business is not performing well.”

Similarly, a compounder in Germany reported, “We received offers with mostly rollovers, although we also received some discounts compared to the first part of March. However, we are not in a hurry to buy as our end product sales are unsatisfactory. Plus, we prefer to wait as prices may lose further ground in the coming days.”
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