As the volume of imports into the continent swells in the face of a dearth of buying in a lacklustre market, Polyethylene (PE) prices into Europe are falling sharply. PE demand in the month of August was the lowest on record- piling up producers inventories despite improved volumes in September.
As PE demand slumps globally, and as export opportunities are limited, Europe seems to be on the verge of being flooded with PE imports. Starting with about 5000 tons, PE has started landing in Europe from the Middle East, with the prospect of higher volumes by the end of October. Thus October prices are expected to come down heavily with the influx of imports.
Low density polyethylene (LDPE) prices for September that have fallen by almost €100/ton are indicated to drop by a further fifty euros in early October. High density PE (HDPE) price also faces deterioration, as most of the imports are thought to be HDPE.
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