European PE sellers announce price hikes despite stable ethylene contracts

04-Nov-15

November ethylene contracts settled with rollovers in Europe, but the PE market is not showing any signs of stabilizing as initial prices started to emerge with increases compared to early October levels, as reported on www.ChemOrbis.com. Sellers hint at tight supply amidst good demand as the main reason behind their higher November PE prices. A West European producer announced increases of €40-50/ton on November PE contracts. In the spot market, the producer raised PE prices by €50-60/ton compared to the beginning of October, simultaneously stating that their prices might be subject to changes depending on buying interest. A producer source cited tight supply and strong demand as the main reasons behind their price hikes, commenting, “Our order books are already full in Germany and we do not expect to see any decreases for the remainder of this year.” In Belgium, an agent of another West European producer started giving November PE offers with increases of €30/ton compared to his early October deals. The seller reported that he has already received some orders for November and said that his supply is only sufficient to meet his regular customers’ requirements. In Italy, a distributor is giving November PE offers with increases of €50-60/ton compared to the beginning of October while these levels are suggesting rollovers from his late October prices. The distributor said that his supply is quite short, especially for HDPE, and reported hearing rumors in the market that PE prices won’t post any decreases at least until January. Meanwhile, a converter reported receiving offers for November PE contracts with relatively smaller hikes of €20/ton from his regular suppliers as per ChemOrbis pricing service.