01 July 2013 15:52 [Source: ICIS news]
LONDON (ICIS)--Dow Europe has announced a €50/tonne ($65/tonne) price increase for July polyethylene (PE) resins across the European, Middle Eastern and African regions, the company said on its website on Monday.
“Effective 1 July 2013, or as contract terms allow, Dow Europe GmbH increases prices for all grades of its low density polyethylene (LDPE), linear low density polyethylene (LLDPE) and high density polyethylene (HDPE) resins by €50/tonne,” the statement said.
Buyers in Europe have already been responding to widespread targets of higher prices from producers for July business, and there is a good deal of scepticism, particularly over attempts to raise HDPE blow moulding and film prices, where imports are widely available.
Sources acknowledged that LDPE and some LLDPE grades were tight, but the only PE grades that showed any consistent shortage in June was 0.3 melt index LDPE and commodity HDPE injection.
Now that production at the cracker level is running at an estimated 85%, from around 75% earlier this quarter, some sources think product will be in ample supply for July.
On 1 July, however, no monthly business is yet under discussion. Spot business has not shown any significant increase in activity as July begins, indicating that buyers may be able to wait to see how the month evolves before committing to higher prices.
June European prices rose above the June monomer contracts and many buyers think there is no reason for PE to rise in July, given the stability in July contracts and the weakness in upstream naphtha.
Seasonal factors, a weakening currency in Turkey and political and economic issues in Africa are also expected to lead to fierce resistance from these regions.
($1 = €0.77)
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