Italy’s PE market stays bullish ahead of supply relief
In the spot market, the latest PE prices are at €1550-1650/ton for LDPE, at €1560-1650/ton for LLDPE and at €1530-1650/ton for HDPE FD Italy, 60 days. These levels are up by €30-50/ton on the low ends compared to last week while they are suggesting rollovers to €20/ton increases on the high ends.
Distributors are reporting increases between €150-200/ton on their May PE deals. One distributor commented, “We have almost sold out our May allocation as supply is quite short this month while buying interest is good. For June, we have heard different expectations. Some players think that PE prices are near the peak while others consider further hikes to be possible.”
A converter received offers for May PE contracts with hikes of €150/ton due to short supply, commenting that he is concerned as the upward trend seems unlikely to end soon.
However, supply concerns are expected ease in the upcoming weeks as European producers have started to lift their force majeure declarations on PE. SABIC lifted a force majeure on supply from their LLDPE/HDPE swing plant in Gelsenkirchen, Germany on April 28. The force majeure was issued on March 30 due to technical issues. In addition, Versalis lifted their force majeure on PE from Dunkirk, France, according to reports late last week.
Borealis has also lifted their force majeure on PE supply from Schwechat, Austria as of today. Market sources said that the company’s plants are operating at full rates following restart and that their monomer availability has returned to normal levels.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- PET bottle fails to salve pandemic wounds; challenges mount as autumn begins
- Can LDPE uptrend hold in Asia?
- Europe PVC prices lag behind global markets, upward pressure mounts
- PS, ABS markets take respite from rising streak in China, SEA
- Muted demand in Europe paves way for plenty of PP, PE offers in Turkey
- Import PE uptrend persists in China despite bearish winds mounting in local market
- 3-digit hikes in Oct PVC offers reinforce supply-driven bullishness in Asia
- Crude oil caught between demand woes and production disruption
- Tightness drives European PVC market up, prices near pre-pandemic levels
- Major LDPE markets touch multi-year highs on growing tightness