Europe PE market remains in the doldrums

17 April 2008 17:29  [Source: ICIS news]

LONDON (ICIS news)--Polyethylene (PE) sellers continue to report flat demand and oversupply in many sectors of the European market, sources said on Thursday.

 

Buyers had already managed to secure some price reductions on low density (LDPE) and high density (HDPE) monthly business, with only linear low density (LLDPE) monthly pricing escaping lower prices.

 

Spot LDPE prices were trading around the €1,200/tonne ($1,905/tonne) FD (free delivered) NWE (northwest Europe) level, with monthly prices discussed higher but at a €20/tonne reduction from March.

 

Outstanding business was still under discussion for April but hopes of improved demand had not materialised for most sellers.

 

“Orders are trickling in day by day and we will probably end up on target for the month but we are struggling,” said one Europe producer.

 

March demand was also flat.

 

The sombre mood in Europe’s PE market was put down to competition from dollar-based imports, the inability to compete with dollar-based product in export markets and widespread gloom over the global economy.

 

Several observers felt PE production would have to be cut back for the market to rally.

 

At present, there were few signs of such activity, with only Polimeri Europa’s LDPE facility at Ragusa, Italy, shutdown due to technical issues.

 

PE producers in Europe include LyondellBasell, Borealis, Saudi Basic Industries Corp (SABIC), INEOS Polyolefins, Repsol, Dow and Total Petrochemicals.

 

($1 = €0.63)

 

For more on PE visit ICIS chemical intelligence

By: Mark Watts
+44 20 8652 3214

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