24 July 2008 17:56 [Source: ICIS news]
LONDON (ICIS news)--Europe polyethylene (PE) producers aim to increase prices further in August, after covering the third-quarter ethylene hike of €190/tonne ($297/tonne) in most cases for July business, sources said on Thursday.
INEOS Polyolefins has announced a €50/tonne increase, SABIC a €75/tonne increase and Dow a €150/tonne hike in August.
Other producers were yet to make their plans clear, and at least two felt that they should exercise some caution in August, as PE buyers had already accepted unprecedented increases in July.
Low density PE (LDPE) was settling in a range of €1,520-1,560/tonne FD (free delivered) NWE (northwest Europe) on a gross basis with spot net prices not much lower.
Lower crude oil was adding nervousness to some markets, but for the time being, there was little impact on the European PE market from this source.
Brent crude was trading at just below $126/bbl, down from the record highs above $145/bbl in early July.
PE buyers were startled by attempts to increase August prices by anything substantial, as third-quarter ethylene was largely covered.
“They talk about improving margins. What about our margins?” said one bemused buyer.
PE suppliers in Europe include Saudi Basic Industries Corp (SABIC), LyondellBasell, Borealis, Polimeri Europa, Dow, Repsol, Total Petrochemicals and INEOS Polyolefins.
($1 = €0.64)
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