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(ICIS) -- Polyethylene (PE) buyers in Europe who are trying to
obtain extra volumes in an effort to avoid higher prices in January face
increased spot prices from traders and closed order books from producers, market
sources said on Wednesday.
December monthly business was progressing normally. Many large
retroactive accounts had not yet settled, and there were expectations of price
increases of ?30/tonne ($40/tonne) from November, which would cover producers’
increased ethylene costs.
Extra sales, on top of contractual volumes, were reported at much higher
levels, particularly for low
density PE (LDPE) and high
density PE (HDPE) injection grades.
LDPE gross contractual prices were now reported above ?1,400/tonne FD
(free delivered) NWE (northwest Europe), netting back to around ?1,300/tonne in
some cases as discounts were applied.
Many sellers had taken the decision to hold on to inventories and sell at
higher prices in January. As a result, when there was material available, spot
LDPE prices were now being offered at ?1,340-1,350/tonne FD NWE on a net basis.
In comparison, November spot LDPE levels had been trading at ?1,230-1,240/tonne
FD NWE.
Price increases were most pronounced in the HDPE sector. After trading
around the ?1,000/tonne FD NWE level for many months, HDPE injection prices now
traded as high as ?1,160/tonne FD NWE on a net basis. Several buyers said that
they were unable to get all the extra volumes they needed.
mrcplast.com
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