European polyethylene spot prices have extended their gains this week, rising Eur 10/mt on the week to Eur 1270-1275/mt FD Northwest Europe. The price hike has been attributed, by market sources attributed to tighter supplies as European LDPE producers scale back their operating rates to ease the pressure on their margins, as per Platts. Spot prices continued a slow ascent that started in mid-October. Similar dynamics were seen in the linear low density and high density PE spot markets. A few producers said they had closed their order books and expected the gains to carry into December. The momentum was aided by rising feedstock naphtha that climbed toUS$930.2/mt CIF NWE on Wednesday, compared with US$914.2/mt CIF NWE on November 1.
However, while European producers said that they were witnessing better-than-expected demand, the gain in LDPE spot price was restricted to Eur 10/mt as the demand was not characterized as buoyant. A converter said that end-user demand was expected to be stable until the end of the year. Another said that, while retail and horticultural packaging is seeing good offtake, offtake from industrial applications has been suffering.
22-Nov-13 
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