31 October 2011 15:58 [Source: ICIS news]
SINGAPORE (ICIS)--Metallocene linear low density polyethylene (MLLDPE) prices are coming under increased pressure in ?xml:namespace>
However, pressure on the more supply-sensitive spot market is clear, as suppliers jostled to secure market share, cutting prices to €1,220-1,300/tonne FD NWE, while material of South Korean origin is available at €1,180/tonne FD NWE.
Despite this, not all MLLDPE buyers are keen to purchase Asian material. It is not clear whether this product is on the water, and most will not agree to sales that will only arrive in
“Producers can argue what they like about margins and upstream movements,” one MLLDPE buyer explained, “but if the price of LLDPE continues to go down because of oversupply, it will take metallocene with it. We expect more reductions in the next month.”
There were some deals for Asian volumes, however, with one film converter saying it had booked shipments the more competitively priced material as far in advance as December.
In the wider LLDPE market, producers are also slashing offers of comparable grade octene LLDPE (C8) to €1,260-1,330/tonne FD NWE on a net basis. However, numerous film converters said it remains preferable to purchase LLDPE because of special ‘one-off’ deals that are currently available in the market.
A film converter explained: “It still makes sense to buy metallocene at the moment, and the market is changing. New production is coming on stream in
Sellers, however, maintain the that specialist nature of the MLLDPE market will provide some support to prices, arguing that poor margins across the wider PE chain do not allow for further reductions.
($1 = €0.71)
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.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections