Skip to content

Filter Options
Text :
Search Criteria :
Territory/Country :
Product Group/Product :
News Type :
My Favorites:
 

Moderate hikes persist in the European PE market

by ChemOrbis Editorial Team - content@chemorbis.com
  • 06/09/2016 (14:51)
Early September deals are being concluded across the spot PE markets in Europe. Moderate hike attempts saw acceptance in some cases and sellers are justifying their higher prices with their limited availability for certain products despite flat ethylene contracts.

A West European producer is giving offers for their September PE contracts with increases of €20-30/ton, seeking to recover their margins. For spot cargoes, the producer lifted their LDPE film, LLDPE c4 film and HDPE blow moulding prices by €20-30/ton from August while giving September offers for HDPE film with rollovers to hikes of €20/ton. A producer source commented, “Our LDPE supply is shorter. We are firm on our HDPE blow moulding offers while we are more flexible with our prices for HDPE injection and film.”

A distributor in Germany applied increases between €20-30/ton on their LDPE, LLDPE and HDPE blow moulding prices for September. The distributor’s prices are at €1280-1320/ton for LDPE, at €1270-1300/ton for HDPE film, at €1320-1330/ton for HDPE blow moulding and at €1230-1250/ton for LLDPE on an FD, 60 days deferred payment basis. The seller stated that he has already concluded some initial September deals at these levels and added that he is doing back to back business due to his fiscal closure this month.

Another distributor in Switzerland is offering West European LDPE film with an increase of €20/ton from August at €1300/ton FD, 60 days. “Demand is currently slow and sellers are citing their limited availability to achieve price hikes despite stable ethylene,” he commented.

A different distributor in the Netherlands concluded some September deals for various locally-held non-European origins, including Egyptian, Brazilian, Saudi Arabian and US cargoes. The seller’s done deal levels are at €1275/ton for LDPE, at €1200-1250/ton for LLDPE c4 film and at €1250/ton for HDPE blow moulding FD, 60 days. He noted that demand is normal while offers from the US have slightly increased due to the stronger euro.

In Italy, a converter bought Central European LDPE film up €20-30/ton from August at €1250/ton on an FD basis in the spot market. The buyer stated that he is planning to make additional purchases, but he is facing difficulty in finding material. Another converter also purchased some South European HDPE blow moulding from the spot market with an increase of €10-20/ton for September at €1270/ton FD, 60 days. The buyer said that a West European producer informed him about their low availability.

For PE contracts, a converter in France received September LLDPE offers at stable levels with respect to August from his regular West European suppliers. The buyer commented that his end product demand is currently calm.
Free Trial