PE sellers attempt for rollovers to slight hikes in Europe
Regional suppliers were heard to be seeking hikes particularly on LDPE grades as supplies are globally tight. Moreover, SABIC declared a force majeure on its LDPE supplies from Wilton, the UK. Higher exports from Europe led to a drop in overall PE supply levels, while production hiccups and lower imports also took some volumes out of the market.
A reseller reported, “Import prices for US PE are well above European price levels, while fresh shipments from the US will be available in December.”
A distributor also attributed hike intentions to the low PE prices in Europe.
A source from a regional producer reported, “Our stocks are balanced as we exported a good amount of LDPE and HDPE cargos to Turkey, China and the US. LDPE demand in Turkey is particularly good.”
Still, buyers expect to close November deals at mostly stable levels even if suppliers approach the market with modest hike attempts. They concur that sellers seek hikes to hinder further softening in PE during November.
A manufacturer commented, “Our supplier is likely to ask for small hikes but we will not buy unless we pay rollovers. Demand for hygiene products performs well. Yet, we will stick to the basic needs amid foggy outlook.”
“Since we are in the medical sector, we expect no major changes in demand for November. Yet, renewed lockdowns weigh on the overall market sentiment,” a compounder said.
Players also point to the declining consumer confidence. Buyers are not building stocks ahead of the year-end, while growing uncertainties amid lockdowns also push them to be cautious with their fresh purchases.
“Demand for certain applications like packaging may not soar as in April-May period considering that the recent lockdowns are not as strict as they were in last spring. Customers are accustomed to the lockdown measures and they won’t be stockpiling,” a converter opined.
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