LONDON (ICIS)--European monthly metallocene-based linear low density polyethylene (MLLDPE) prices are falling in line with the wider polyethylene (PE) market following last week’s settlement of the February ethylene contract, which fell by €40/tonne, sources said on Friday.
A decrease of €30/tonne is confirmed but buyers are confident of achieving the full €40/tonne ethylene drop when business is finalised.
“By the end of the week it’s looking more like minus €40/tonne,” said a producer.
Spot MLLDPE prices are also under downward pressure. Imports are said to be offered below €1,350/tonne FD (free delivered) NWE (northwest Europe), while levels above €1,400/tonne are still viable, as many buyers stick to their preferred supplier.
Linear low density polyethylene (LLDPE) C4 (butane-based) spot prices were also lower, alongside a general downward move in LLDPE spot prices.
Producers’ inventories are understood to have increased and demand remains flat as buyers expect lower prices next month.
By the end of the week, spot offers were reported to be coming from western European PE producer sources in the wider market and traders were finding it hard to compete.
There is no longer any tightness in the PE film sector, said sources.