Ethylene hike fails to find reflection in the European PE market
A West European producer announced increases of €25/ton on their June PE prices both in the contract and spot markets last week. This week, another West European producer is continuing to give offers for their June PE contracts with increases of €25/ton in line with the ethylene settlement.
Although hike requests persist on the producers’ side, distributors didn’t follow suit. A distributor in Switzerland cut his West European PE prices by €20/ton from his early June levels, pointing to slow demand. Another distributor in Germany concluded some June deals with rollovers to some decreases from May, except for HDPE film. “Our supplier decided not to apply increases on most PE products in order to match the overall market levels. We only sold limited volumes so far this month as demand is generally calm,” he commented.
A buyer in Switzerland reported receiving offers for June PE contracts with rollovers from European producers. Several other buyers in Italy received June PE offers with rollovers to increases of €20/ton last week, with a packaging producer voicing soft expectations for the short term, having heard about some decreases. Indeed, a few buyers either achieved some discounts or gave lower counter bids in the spot market this week.
Upstream, spot ethylene prices in Europe edged up over the past week on the back of production outages mainly in France and Germany.
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