European LDPE market retains downward trend on ongoing length
Data from ChemOrbis Price Index suggest that local LDPE film prices in Italy and Northwest Europe have been mostly on a decreasing trend since around mid-June. Italy’s spot LDPE film market has witnessed a cumulative decline of around €70-75/ton based on weekly average data since the downtrend kicked off while prices in Northwest Europe have lost a total of €50/ton in the same period.
A distributor in Italy stepped back from his initial rollover requests and conceded to discounts of up to €30/ton for LDPE film while he kept his HDPE prices mainly stable. Another distributor in Belgium commented, “LDPE prices are dropping on a daily basis and we applied €50/ton decreases on our prices as demand is very slow amid long supply.”
An Italian buyer commented, “We have received several LDPE offers recently with decreases of up to €40/ton, but we are planning to limit our purchases to the contract market as demand is very low.”
Meanwhile, a distributor of a West European producer opined, “LDPE film is currently trading below the September contract level of ethylene. We believe that PE producers might reduce their production given extremely narrow margins.”
September ethylene contracts settled at a rollover for the second month in a row at €1135/ton FD NWE.
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