European polyethylene contract as well as spot prices surged this week, supported by bullish ethylene, as per Platts. Spot prices of feedstock ethylene have surged this week following historic low cracker margins touched last week. Ethylene spot prices crossed the Eur 1000/mt FD NWE mark this week, for the first time since mid-September. A spot deal was heard Wednesday at Eur1,060/mt CIF NWE, 2,300 mt for late January delivery.
In the polymer contract market, LDPE, LLDPE and HDPE have posted increase of Eur 40/mt -- equivalent to the increase in the January contract price for ethylene. Producers are targeting increases over the Eur 40/mt ethylene contract price increase at Eur 60-80/mt. "We don't see any other producer being flexible with pricing below an increase of Eur 60/mt," one producer said.
Converters are eager to buy their January allocation early in the month in the face of rising prices, but were discouraged by flat order books. Despite a "sleepy" end user market, soaring feedstocks also pulled up spot prices in NWE PE market.