19 April 2007 15:13 [Source: ICIS news]
LONDON (ICIS) news--European polyethylene (PE) producers were already eyeing increases for May business even before some sectors of the market had settled for April, sources said on Thursday.
“My major suppliers have told me that they will be looking for increases next month. They say availability is tight and that their costs have increased, particularly naphtha,” said one low density PE (LDPE) buyer.
LDPE prices have not fully settled for April as many large buyers negotiate their monthly price only at the end of the month on a retroactive basis, but indications were that prices would increase by €25-30/tonne ($34-41/tonne), leaving prices at €1,220-1,230/tonne FD (free delivered) NWE (northwest Europe).
Three major producers made it clear on Thursday that they would be targeting higher prices next month but they had not yet made formal announcements to the market.
Basell said it would be allocating all PE volumes next month but reported that high density PE (HDPE) was again the tightest of all its grades.
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