Tight supply keeps PE prices firm in Italy
A distributor reported selling out his February PE allocation and said that he couldn’t procure extra volumes from his West European supplier who has already closed their orders. The seller expects ethylene contracts to settle up by €70/ton for March. Another distributor raised his PE prices by €35/ton from early February levels given bullish expectations for March. The seller projects increases of €50-60/ton for the upcoming ethylene contracts. A different distributor sold out his February HDPE allocation with rollovers to discounts of €10-20/ton from January and claimed that he could not procure LDPE from a West European supplier.
Buyers reported receiving the latest PE offers with increases of up to €40/ton compared to the beginning of the month and rollovers from January ahead of the projected gains for March. Confirming the prevailing tightness in the PE market, some converters could procure only a limited part of their orders and others even reported delays in their deliveries.
A converter said, “We received West European LDPE and LLDPE offers up €30/ton from early February levels. For March, ethylene contracts could settle with increases between €50-90/ton.” A packaging producer, who received West and South European PE offers with increases of €40-50/ton from early February, added, “We ordered some volumes at lower levels earlier in the month while we are yet to receive deliveries. For March, we heard talks of sharp hikes of €100/ton for the ethylene contracts.”
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