Local PP, PE prices in Europe see new lows ahead of June
A distributor from the Netherlands commented, “We concluded some PE deals for May with decreases between €20-70/ton as we aim to achieve good sales regardless of our squeezed margins. The market is under pressure due to the lower feedstock costs while HDPE inj. prices posted the steepest falls on comfortable supplies. End demand for this product remained poor due to the unsupportive weather conditions.”
A buyer in Italy purchased import LDPE from Turkey below €1300/ton threshold at €1240-1250/ton DDP with delivery at the end of the month. The buyer argued, “We are confident about seeing more imports in the coming days, which might exert more pressure on local prices.”
An Italian seller reported that they concluded some deals, giving into large decreases of €70/ton from April on PP in order to become more competitive and attract demand in the midst of sufficient supply levels on their side and quiet demand with buyers eyeing for further decreases.
Players anticipate €20-40/ton decreases in June ethylene, propylene contracts and accordingly PP, PE prices might see new decreases unless demand picks up.
In Italy, the low ends of the PE ranges were all formed by locally held Middle Eastern cargoes to be reported at €1250-1330/ton for LDPE, €1200-1280/ton for LLDPE, €1180-1250/ton for HDPE film and b/m and €1180-1240/ton for HDPE inj., FD, 60 days.
In Northwest Europe, the low ends were formed by competitively priced European, Egyptian and Middle Eastern cargoes with overall local PE prices being quoted at €1280-1360/ton for LDPE, €1200-1280/ton for LLDPE, €1180-1270/ton for HDPE film and b/m and at €1180-1260/ton for HDPE inj., FD NWE, 60 days.
As for PP, local prices in Italy were quoted at €1160-1270/ton for homo PP and at €1210-1320/ton for PPBC inj. while PP prices in Northwest Europe are at €1170-1280/ton for homo PP and at €1240-1340/ton for PPBC inj., all on local terms.
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