01 August 2013 16:24 [Source: ICIS news]
LONDON (ICIS)--Producers in the European high density polyethylene (HDPE) pipe grade market are aiming to increase August prices from July levels, they said on Thursday.
This follows the settlement on Wednesday of the August ethylene contract price (CP) at €1,210/tonne ($1,613/tonne), an increase of €40/tonne from July.
“We're going to target a €90/tonne increase,” one producer said. “Demand is very healthy – we sold more than expected in July. We already have a high order intake for August, more than we expected. Based on all this, we feel a substantial increase is possible.”
A second producer said it would aim to increase HDPE pipe prices by more than the monomer increase, although admitted that achieving such a hike might prove difficult. Neverthless, it was adamant that it would achieve a minimum increase of €40/tonne.
Other market participants doubt that customers would accept more than the monomer increase because of the reduced demand due to the summer holiday season.
A distributor has received offers from producers at increases of €40-80/tonne from July.
“But I see in reality that only the C2 increase will go through at max,” the source said.“In general, demand is better but not brilliant, and we have a holiday month where, especially in southern Europe, most companies are closed [for] between 2 and 4 weeks.”
A buyer agreed: “The maximum we’d accept is a €40/tonne increase. Demand is not healthy. It’s very slow. We have the holiday season still going on.”
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