19 April 2013 10:44 [Source: ICIS news]
LONDON (ICIS)--Polyethylene (PE) spot prices in Europe are falling further as sellers try to tempt buyers back to the market with lower prices, sources said on Friday.
The widespread belief that prices will go down again in May is preventing most buyers from committing to extra volumes unless the offer is well below the market, however.
“I’ve been given a €60/tonne ($78/tonne) reduction for April, and the offer of another €50/tonne if I take more volume,” said one buyer, “but I will wait for May.”
This was echoed by buyers throughout Europe.
Spot activity is very patchy and done only on a truck by truck basis. There are wide price variations according to volume and region and the PE grade in question.
Imports of high density polyethylene (HDPE) in particular are widely available and affecting sentiment in this sector.
In March spot HDPE blowmoulding was traded at €1,320-1,340/tonne FD (free delivered) NWE (northwest Europe). Bids are now at €1,200/tonne FD NWE and below but business is thin.
Other spot grades suffered similar or deeper price cuts.
HDPE blowmoulding is used widely in the packaging sector.
($1 = €0.77)
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