SABIC closes Europe LDPE order books for March

26 February 2010 13:19  [Source: ICIS news]

LONDON (ICIS news)--SABIC has already closed its order books for tubular low density polyethylene (LDPE), even as some February LDPE pricing is still under discussion, a source with the plastics major said on Friday.

“There is a lot of tension to manage,” said another producer. “Our LDPE supply position is critical, not only for March but also for April.”

LDPE availability was tight across Europe due to reduced output and strong exports earlier in the year, when European demand was not so strong.

Buyers confirmed that LDPE availability was tight.

“My supplier rang me to tell me he couldn’t supply my March material,” said a medium-sized buyer, who expected to be able to procure material from elsewhere, however.

The spot LDPE market did not show the same buoyancy as the monthly contract markets.

Spot prices were not moving up significantly after a very sharp rise in February.

LDPE spot numbers were reported around €1,150/tonne FD (free delivered) NWE (northwest Europe), with no signs of panic buying from converters.

PE producers were planning to increase PE prices by €50-80/tonne ($68-108/tonne) in March, but most buying sources saw possibilities of a substantial increase only for LDPE, and possibly linear low density PE (LLDPE).

High density PE (HDPE) supply was widely considered to be more available.

($1 = €0.74)

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By: Linda Naylor
+44 20 8652 3214

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