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)
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