European LDPE, LLDPE hover around 4-year-lows
Some players are still on the sidelines, waiting for small discounts in deals in the second half of the month. They are mainly pointing to ample supplies and weak demand. “Although ethylene contracts settled stable, the lack of supply issues and unspectacular demand may weigh on prices,” some argued.
The pressure from import offers is also supporting buyers in their quest for discounts in their monthly deals with their European suppliers. Non-European PE offers particularly from the Middle East and US are offering a competitive edge, standing at least €50/ton below the offers for local origins in the spot market.
However, sellers mostly disregard the possibility of seeing discounts in the near term. “This expectation does not have a leg to stand on when local prices have already been standing at multi-year lows. We are at the bottom,” claimed some distributors.
Others pointed to the upcoming cracker maintenances, which have already triggered expectations of seeing a higher settlement for ethylene for next month. The upstream naphtha market has also been firm so far in February.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Local PP, PE offers for July track global uptrend in Saudi Arabia
- Initial ABS prices for July see larger increases than PS in Europe
- Supply constraints spark stronger PE trend than PP in global markets
- ABS, PS uptrend falters in China after H1 2020 ends at multi-month highs
- Stats: China’s total PP imports spike in May; Vietnam and India’s rising shares shine out
- Tight supply drives HDPE, LLDPE gains in Southeast Asia
- European PE markets set for 2nd bullish month on rising costs
- Turkey’s PP and PE markets propelled to a firm start to H2 despite vulnerable conditions
- Asian PVC sees V-shaped recovery in Q2, what will Q3 bring?
- Will capacity additions cast cloud on ethylene upsurge in Asia?