05 September 2013 17:25 [Source: ICIS news]
Two producers are targeting three digit increases across the majority of their polyethylene products, including HDPE pipe.
One producer said it expected stronger demand in September and was already seeing good orders in the first week of the month, justifying the push for the €100/tonne increase.
“The message is that we see September as demand is getting better,” the producer said, adding: “[we] understand customers have no stock, we have no stock, on top of that [there was] a big push from ethylene”.
A third producer said it will look for a slightly lower hike in September, targeting €70/tonne.
Initial reaction from buyers is that a €100/tonne increase would be too high because demand has not taken off as expected.
When asked if demand was improving in September, a buyer said: “No! Very clear, no. Demand in the market could be much, much better”.
Demand from the German market was behind targets, and construction project in Poland were not generating great levels of demand. There were higher levels of demand from Scandinavia, it added.
Other buyers agreed that September demand levels, at present, were only seeing slight increases following on from the summer vacation period.
“No massive demand for us, we don’t expect too much an increase in September,” another buyer of HDPE pipe said.
($1 = €0.76)
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