In view of robust demand and ongoing supply issues, some players have started to express bullish expectations for March in Italy’s PE market, as per Chemorbis. Minimum price hikes of €100/ton have already materialized for PE in Italy’s spot market for February, over and above the €60-100/ton increases in January. The higher ethylene contracts for January and February, have been the main driver of the current upward trend. In addition, supply-demand dynamics are also supporting the bullish run since sellers generally report seeing good demand in Italy while supplies have been tight throughout Europe for some time. Italian converters also say that their end product markets are showing satisfactory performance.
A large sized buyer commented that he is considering securing more cargoes this month at competitive prices if he can find any because he thinks that producers may seek further increases in March. A West European producer also noted that they are quite firm with their hike target of €100/ton for this month, adding that they are mulling over further increases for March in the wake of the good demand and snug supply. Other producers in the region also reiterate that they have very low stocks for PE while a couple of major producers are about to be sold out in Italy, according to players. Dow has also announced that they stopped accepting LDPE orders for February. While current supply and demand conditions are in favor the ongoing bullish trend, the outcome of the next ethylene contract is also expected to play an important role in setting the tone of the market for March.