Some PE sellers aim for stable prices on tight supply in Italy
A West European producer announced rollovers on their December PE prices both in the contract and spot markets. A source from the producer reported that they are holding low stocks for this month. A South European producer also left their PE prices unchanged for December, pointing to tight supply, especially for HDPE.
A distributor lowered his West and South European prices by €10-20/ton for HDPE and by €30/ton for LDPE from November. “We issued smaller decreases for HDPE as supply is shorter for this product. Our sales were good in November and we expect to see healthy demand this month now that prices have reached acceptable levels,” the distributor commented. Meanwhile, sellers of locally-held Middle Eastern PE elected to keep their prices stable at the beginning of the month due to their limited availability.
Several converters reported receiving initial December PE offers with rollovers to decreases of up to €40/ton. A packaging producer bought West European LLDPE with small decreases of €10/ton from November. The buyer stated that he is planning to suspend his production between December 19 and January 7 as his end product demand is not encouraging. A packaging producer bought West European LDPE and HDPE film €20-30/ton below last month to ensure that they have sufficient stocks until the first week of January. The buyer commented that PE prices are unlikely to gain ground in January and stated that he projects mainly rollovers on January deals.
Some sellers are seeking to maintain their PE prices at the beginning of the month, supported by tight supply and despite lower feedstock costs. Availability remains limited, with Ineos declaring force majeure on LLDPE and HDPE from Grangemouth, the UK in late November. However, some discounts have already started to pass on initial December PE deals as sentiment remains weak in upstream markets since Brent crude prices continue to hover at around the lowest levels seen since May 2010.
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