04 July 2013 16:56 [Source: ICIS news]
LONDON (ICIS)--Metallocene-based linear low density polyethylene (MLLDPE) sellers are targeting increases for July, in line with the wider polyethylene (PE) market, even though the July ethylene contract settled at a rollover, sources said on Thursday.
Buyers were taking their time in settling July business as they had already had some time to build up stock in May and June.
Associated PE film grades low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) are tight, however, and this is expected to support producers’ MLLDPE pricing targets to a certain extent.
“LDPE and LLDPE remain the drivers in this market and metallocene [LLDPE] will be pulled up with these grades,” said one producer.
“It’s a rollover month,” said a buyer, who also admitted that all producers so far are asking for higher prices for MLLDPE in July.
Expectations of higher prices did not exceed an increase beyond €20-30/tonne ($26-39/tonne) by most players.
Imports from South Korea are not attractively priced, at $1,800/tonne DDP (delivered duty paid) to European customers, and product will take at least six weeks to arrive.
MLLDPE prices were trading around €1,360-1,420/tonne FD (free delivered) NWE (northwest Europe) at the end of June on a net basis.
MLLDPE is used in the packaging market and its growth is assured because of its particular downgauging properties, which mean less product is used to make thinner, stronger films.
($1 = €0.77)
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