22 October 2013 11:33 [Source: ICIS news]
DUSSELDORF (ICIS)--Polyethylene (PE) and polypropylene (PP) players are attempting to second guess pricing movements as the K2013 plastics fair draws to a close, several said on Tuesday.
“We were expecting a big reduction in November propylene and hence PP,” said a large PP buyer. “Now I don’t think we can expect more than a €20/tonne decrease.”
Expectations of a price drop in November had been based on lower naphtha prices, which fell below $900/tonne CIF (cost insurance freight) NWE (northwest Europe) in early October, but closed at $914-916/tonne on Monday.
In spite of strength in upstream prices, demand is very cautious and spot sellers have had to drop prices to encourage buyers to the market.
Many PE and PP buyers are now sticking with their regular producer as they aim to reach contracted volumes that will give them another discount at the end of the year.
“Prices are low but even so buyers are not that interested to buy,” said a distributor, “but I can’t see prices dropping any lower than they are now.”
High density polyethylene (HDPE) spot prices are trading around the €1,200/tonne ($1,644/tonne) FD NWE level, on a net basis, while low density polyethylene (LDPE) prices are at €1,250/tonne FD NWE, with some lower levels confirmed but not considered representative of most business.
PP spot prices were hard to gauge as business was slow, but there was talk of levels around €1,190-1,200/tonne FD NWE for homopolymer injection.
($1 = €0.73)
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