Hefty hikes pass in PE deals in Europe, further increases ahead
An Italian reseller reported concluding a deal for Iranian LDPE with €90-100/ton increases from early February at €1430/ton FD, 60 days. “Overall LDPE supply is very tight and prices are increasing rapidly. We sold European LDPE with €80/ton increases on the high end of the overall LDPE range at €1450/ton. We also sold Middle Eastern LLDPE with increases of up to €80/ton in the range of €1280-1320/ton on the back of tight availability. HDPE activity is slower compared to other PE products. Prices are likely to remain firm in April; however, the market may see a reversal in trend afterwards,” added the seller.
A different seller said, “We can sell material only to our regular customers as tightness persists. Demand was good in the past two months and buying interest is vivid for this month as well.”
There are also sellers who are asking for relatively more modest increases. They are planning to apply new hikes in the days ahead considering that demand is rather good in Europe with low inventories at most converters. “They continue to buy on a hand to mouth basis, though,” claimed a reseller from the Netherlands.
A buyer who has already secured some cargoes noted that he was warned by his supplier to confirm orders quickly as prices may post further hikes in the weeks ahead given the fact that producers are running their plants at low rates.
So far this week, PE prices are reported at €1370-1450/ton for LDPE, at €1260-1340/ton for LLDPE and at €1270-1360/ton for HDPE film and b/m FD Italy, 60 days, while in Northwest Europe, prices stand at €1370-1460/ton for LDPE, at €1280-1350/ton for LLDPE, at €1270-1370/ton for HDPE film and b/m and at €1260-1350/ton for HDPE injection on local terms.
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