Local LDPE remains indifferent to HDPE rise in Italy

20-Apr-11

LDPE and HDPE prices in Italy are tracking different paths in April, as per Chemorbis. Looking at the last couple of weeks, HDPE sellers have been standing on firmer ground as a result of tight supplies and better demand for this product whereas LDPE sellers, who continue to suffer from low buying interest as a result of high prices have been conceding to mainly rollovers following initially higher prices from producers. The upcoming Easter holiday has also contributed to the slowness in demand as some converters have taken extended holidays. Spot done deals so far indicate increases of €20-40/ton for HDPE while LDPE continues to draw a mainly steady outlook for the rest of April with sellers conceding to rollovers and even discounts in some cases. Besides limited availability on the sellers’ side, a €10/ton increase on the April ethylene contract, improving demand for some HDPE applications, as well as room to move up considering significantly higher LDPE prices were also considered as the main drivers behind the visible strength of HDPE against LDPE this month. In comparison with LLDPE and HDPE, LDPE film has been trading at a premium for the last few months, which caused Italian buyers to show stiff resistance to pay further albeit moderate increases sought by LDPE sellers for April. According to data from ChemOrbis Price Wizard, local LDPE film has traded at a premium of up to €180/ton over HDPE film and blow moulding on FD Italy basis over the past ten weeks, with the premium showing a tendency to move lower over the past few weeks as HDPE prices gained some further ground while LDPE prices tracked a stable to softer trend.