05 July 2013 13:19 [Source: ICIS news]
LONDON (ICIS)--Polyethylene (PE) and polypropylene (PP) traders are finding it hard to source product into Europe at workable prices, several said on Friday.
Offers of C4 (butene based) linear low density polyethylene (LLDPE) at $1,620/tonne CFR (cost and freight) Europe are too high, even with its advantageous duty status.
With handling and delivery costs, this price level is higher than most C4 LLDPE business in Europe at present. Current trades of C4 LLDPE are around €1,250-1,280/tonne FD (free delivered) NWE (northwest Europe).
Metallocene linear low density polyethylene (MLLDPE) price of $1,800/tonne DDP (delivered duty paid), to be delivered in at least six weeks’ time, was also deemed too high to work even though some traders were not able to buy at such a level.
Limited offers of high density polyethylene (HDPE) injection at $1,550/tonne CFR NWE were also too high to work into Europe, with duty and costs to be paid on top of this level.
“It will make August and September all the more interesting,” said one trader, “as business will be in the hands of the producers.”
PE and PP prices increased in June, on earlier cutbacks and tight availability of some grades. Producers are attempting to lift prices in July, and while they see some success in certain PE grades, buyers are in no hurry to settle for July at present.
MLLDPE spot prices are trading around €1,360-1,410/tonne FD NWE, while PP homopolymer injection is around €1,200-1,220/tonne FD NWE.
($1 = €0.77)
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