Polyethylene, polypropylene contract prices hit 2016 highs on feedstock rise

06-May-16

Low density polyethylene contract prices reached a more than 8 month high, following the rise in feedstocks, as per Platts. LDPE contract prices were assessed Wednesday at Eur 1560/mt (US$1793/mt), up Eur40 on the month. This followed the ethylene contract price fully settling at Eur910/mt FD NWE for May, up Eur40/mt from April. This occurred amid strong demand and bearish price expectations on the seasonal pick-up in volumes. Meanwhile, homo injection polypropylene prices rose Eur25/mt Wednesday to a high not seen in five months. Prices were assessed at Eur 1205/mt Wednesday. Prices had risen more than the increase in feedstock propylene costs for May. "We are already seeing a spread improvement [between cost and revenue]," a producer source said this week citing strong fundamentals. Feedstock propylene's European contract price was fully settled Thursday at Eur635/mt FD NWE, up Eur15/mt from April. PP supply in Europe is expected to remain limited this month due to maintenance.