Dow targets €150/tonne increase on July PE
20 June 2008 17:22 [Source: ICIS news]
LONDON (ICIS news)--Dow is targeting a €150/tonne on all its polyethylene (PE) for July, a company source said on Friday.
The move came after the company targeted a €100/tonne hike for June.
PE prices rose across the board in June, with all grades moving up by €50-100/tonne FD (free deleivered) NWE (northwest Europe).
SABIC had already announced a €200/tonne increase for July PE, based on high upstream costs, rather than very strong demand.
A couple of large converters said that they would simply stop producing grades which produced negative margin.
“If we are offered plus €200/tonne on a take-it-or-leave-it basis, then we will have to leave it,” said one large buyer.
Some PE producers were sympathetic to converters’ arguments but said that they had no choice but to target higher prices or their margins would be similarly hit.
High oil prices remained a feature of the market, with Brent trading at $134/bbl on Friday.
Players were hopeful that ethylene would be settled imminently so that a clearer picture could emerge for July business.
Low density PE (LDPE) spot was firm and some buyers confirmed levels as high as €1,300/tonne FD NWE. There was a wide spread of prices, however, and a shortage of offers in this sector.
PE suppliers in
($1 = €0.65)
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By: Linda Naylor
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