SABIC to seek Europe hikes for January PE

12 December 2008 09:16  [Source: ICIS news]

LONDON (ICIS news)--SABIC aims to increase its low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) prices In Europe by €50/tonne ($67/tonne) in January, a company source said on Friday.

It was not yet clear if high density polyethylene (HDPE) would also be targeted for increases.

“We are destroying value in the chain. We have to turn sentiment around,” the SABIC company source said.

PE prices have slumped during the second half of 2008.

LDPE spot prices were trading at €600/tonne free delivere (FD) northwest Europe (NWE) in December, down from their high above €1,450/tonne FD NWE.

Demand in 2008 was estimated to be down by as much as 15% by some market sources.

There were signs that the current spate of price decreases was slowing down as production was reduced and buyers came back in order to have some stock for the beginning of the year.

“We are facing stock shortages in some grades. We don’t need to push for volume,” said the SABIC source.

One other major producer was also planning to increase prices in January, but others felt that a turnaround would not be possible so soon.

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

($1 = €0.75)

For more on PE visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Linda Naylor
+44 20 8652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly