13 December 2012 14:32 [Source: ICIS news]
LONDON (ICIS)--Italian-based polyethylene (PE) producer Versalis has closed December low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) order books, a company source said on Thursday.
LDPE and LLDPE availability in Europe has been tightening over the past couple of weeks as production rates have been cut back even more and buyers put a little into stock ahead of what seems an inevitable price hike in January.
Spot prices have risen accordingly but producers are facing heavy resistance when they attempt to implement increases for December contracted business.
Dow has also closed its LLDPE order books for December.
PE producers have started talking about increases for January, based on high costs rather than strong demand, and market talk hints at strong three-digit hikes from some suppliers.
Others are less ambitious and do not expect demand to be strong enough in January for such increases to take hold, and talk of more modest increases.
“The industry needs to restore some margin,” said a PE producer.
LDPE and LLDPE are used widely in packaging and agricultural sectors.
($1 = €0.76)
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