Have LDPE and HDPE prices bottomed in Italy?

In Italy, the overall PE market showed a rather bearish outlook since September, while ethylene contracts in the region have been following a stable to softer trend since August, as per ChemOrbis. Prices for spot LDPE film and HDPE have reached the lowest levels since 2010 and sellers are now trying to stabilize market levels by mostly seeking steady prices for December. According to ChemOrbis Price Index data, spot LDPE film prices are hovering at the lowest levels since January 2010. Meanwhile, current HDPE offers are back to the levels that were last reported in December 2010. Nowadays, players question if the prices have reached bottom levels or not while some comment that prices might firm up a bit in January, after the market shrugs off the Christmas and the New Year holidays’ lull, although there are no signs of pre-buying activities at the moment. A packaging manufacturer, who received stable to slightly softer December offers, reported not being interested in making fresh purchases as they have already secured some cargoes during November. He thinks that sellers are trying to dispose off their quotas ahead of the approaching holidays to reach their annual sales targets. However, for January, he has been informed by a seller that PE prices might record gradual increases. According to the converter, this seller has pronounced €40-50/ton hikes for the next month. Meanwhile, a trader, who lowered their offers by €20/ton from November levels, deemed overall PE demand as “not bad” and commented that the general supply levels are comfortable in the market. However, he also speculated that PE prices might start rising at the beginning of the next year. A compound converter highlighted that the current PE availability in the market is not bad but he thinks that the market might face some supply issues in the upcoming weeks considering the lower operating rates of some producers, caused by sluggish PE demand in the region. This buyer comments that the effects of such a situation might reflect on January prices. A distributor reported that the overall market trend is already low while adding that their suppliers’ LDPE film availability is comfortable but their HDPE film supplies are relatively tighter. According to him, sellers with limited stocks are trying to maintain their prices this month. “However, some price hikes might be seen as of next year and some sellers may even try to issue some hikes before the Christmas holiday,” he predicted. A source from a South European producer, who lifted their initial December LDPE prices by €40/ton and rolled over their HDPE film prices from November levels, commented that they are mulling total increase of €100/ton for December and January. The seller, who highlights their need to improve their margins, is planning to announce some of this hike figure in December and revealing the rest of it in January.