Initial March offers revealed in European PE market

March PE offers in Europe were mostly suspended until yesterday as players were waiting to see the full settlement of ethylene contracts, which were agreed €30/ton higher after an initial contract with €15/ton increase was not followed.

Now early March offers are emerging with €50/ton increases in the contract market..

A South European producer announced €50/ton increases on their gross contract prices for March. A producer source said, “We think that buyers will easily accept these increases considering the lack of competitive import material and limited supplies in Europe.” Two buyers confirmed hearing the initial offers for March with €50/ton increases from the producer.

A source from a West European producer also said, “We expressed March sell ideas with increases of at least €50/ton as demand is really good. We are receiving good orders as many customers did not purchase in February and they are running out of stocks. PE supply is tight due to some force majeure declarations and turnarounds.”

Prior to the final settlements, a distributor in Italy said that he was waiting for the new March PE offers, adding, “PE prices may increase by €50-80/ton as suppliers will try to recover their margins. However, buyers who purchased extra volumes ahead of the increases will probably skip their purchases for March.”