LDPE prices could see further hike for April in Italy

19-Mar-10

In Italy, March business is being conducted with increases of €20-60/ton for LDPE on the back of tight supplies though the monthly ethylene contract settled at a rollover, as per Chemorbis. Many buyers have no option but to accept the hike requests as they are unable to satisfy their LDPE needs easily. The high end of the spot LDPE range has reached as high as €1220/ton, while a limited number of relatively competitive offers from Central Europe and Turkey are at €1150-1160/ton at the low end of the range on FD North Italy, 60/90 days deferred payment basis. Speculations for the April market outlook indicate further increases. While tightness concerns have been providing support for sellers to seek higher prices for another month, an anticipated increase in ethylene contract settlement next month pointing to spot ethylene values, are also supporting hikes. Spot ethylene is currently €25/ton above early March. A couple of buyers are already informed that further price hikes will be sought next month based on the expected hike for the monomer contract.