May sell ideas emerging higher for PE in Europe
Sellers are aiming for hikes larger than the gains in ethylene contracts for another month, pointing to the prevailing tightness. Even though several PE plants across Europe were in a restart phase as of end-April, supply levels are yet to improve as force majeure declarations from these plants remain in place.
A West European producer settled their April PE contracts with hikes of €180/ton while obtaining slightly larger increases of €200/ton on their spot deals. Following the ethylene settlements, a source from the producer stated that they are planning to ask for increases of at least €100/ton on their May PE prices given persistently tight supply.
A distributor in France concluded his April PE deals €200/ton above last month in the spot market after issuing additional hikes of €60-80/ton compared to the beginning of the month. The distributor’s done deal levels are at €1400-1420/ton for LDPE, LLDPE and HDPE blow moulding and at €1420-1430/ton for HDPE film on an FD France, 60 days deferred payment basis. For May, the distributor expressed his sell ideas with increases of €70-80/ton from April, predicting that buying interest will be slower due to a number of bank holidays in France.
In Germany, a distributor sold out his April PE allocation with hikes of €200/ton from last month at €1440-1460/ton for LDPE film and HDPE injection, at €1460/ton for HDPE blow moulding and LLDPE c4 film and at €1480/ton for HDPE film, all on an FD Germany, 60 days deferred payment basis. The distributor expressed his May sell ideas €100-150/ton above April, pointing to the prevailing tightness as the main reason for their sharp hikes.
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