Europe PE producers seek to recover Q1 C2 hike

20 December 2007 16:19  [Source: ICIS news]

LONDON (ICIS news)--European polyethylene (PE) producers intend to increase January prices to cover the whole first-quarter ethylene increase of €78/tonne ($111/tonne), several said on Thursday.

Saudi Basic Industries Corp (SABIC) and Dow Chemical had already announced increases of €100/tonne and €120/tonne respectively before the ethylene settlement.

Polimeri Europa was also looking for an increase, of €80/tonne in January, while a Borealis source said that the company would be looking to cover the whole of the ethylene hike in January.

An INEOS Polyolefins source confirmed that it would be seeking an €80/tonne hike on PE for January.

On the whole buyers were accepting the need for increases.

“We will have to pay more next month, that’s clear,” said one large buyer on Thursday, “but it won’t be as much as €80//tonne.”

Some grades of PE were becoming tight, particularly linear low density PE (LLDPE), but all grades were considered to be firm.

Most players envisaged a strong start for pricing in 2008.

($1 = €0.70)

By: Linda Naylor
+44 20 8652 3214

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