Spot LDPE hits nearly a decade low in Italy
According to ChemOrbis Price Index, spot LDPE prices in Italy shrunk to their lowest levels since December 2009 on a weekly average. LDPE posted cumulative drops, losing around a total €100/ton since late June.
This stemmed from subdued demand ahead of the August holidays as well as competitive Middle Eastern origins available in the spot market. Meanwhile, historically low prices stirred buying appetite, with sellers reporting satisfactory sales results during July.
In upstream, spot ethylene prices retreated to their February levels after plunging by around 23% since June, according to the weekly average data from Chem Orbis Price Wizard. They have recently hit around €825/ton on FD NWE basis, well below the July ethylene contract level at €1000/ton.
Spot declines are expected to pave the way for renewed decreases in the monthly ethylene settlement.
Still, some players argued PE suppliers might approach the market with rollovers, blaming very low PE prices below July ethylene settlement.
A buyer opined, “The amount of expected drops on August ethylene contracts might be large as the gap between spot prices and July contract level is too wide. However, PE prices might remain stable as they already dealt below the ethylene contract level.”
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