Producers contract price increases not accepted by European polyethylene converters

04-Apr-14

European polyethylene converters have rejected contract prices increases for April announced by PE producers, as per Platts. PE producers announced increases of Eur 20-40/mt, while converters were eyeing at a rollover in prices. Converters said fundamentals did not warrant an increase in contract prices, as feedstock ethylene contract prices had slipped. Ethylene contract price settled last week at Eur 1,165/mt FD NWE for April, down Eur 15/mt on the month. Producers cited as a combination of factors relatively tighter supplies, the beginning of seasonal demand and an improvement in margins needed as reasons behind their targets for higher prices. Converters did not share this optimistic outlook for a demand uptick.