Higher ethylene contracts unable to reverse the PE trend in Europe
A plastic end product manufacturer in Germany said that they received new July offer from their regular Northwest European supplier with a rollover from June, adding that they are confident that they will be able to achieve discounts on deals due to slow demand. In addition, some market players commented that the PE market faced strong pressure from the import market.
“We issued some small decreases on our July PE offers while we do not exclude to give further declines during the monthly negotiations in the face of muted buying interest,” said a European producer.
A converter based in Italy stated that they have received new July offers for LDPE and LLDPE from their regular South European supplier with decreases of around €40-50/ton from June. “Demand is slow and we think that the market trend will remain bearish until August,” added the converter.
A trader concluding few July deals with decreases of €50-60/ton from early June levels also reported that demand seems to be slightly better than last month as some players are questioning whether the market is nearing bottom levels following lower July offers.
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