Europe MLLDPE stable as players wait for May ethylene to settle

25 April 2014 12:23 Source:ICIS News

LONDON (ICIS)--Metallocene linear low density polyethylene (MLLDPE) prices are stable and activity is thin as players wait for the May ethylene contract to settle, sources said on Friday.

Anything between a rollover to modest increase or decrease was discussed for the new monomer contract.

The wider linear low density polyethylene (LLDPE) sector was also stable, with more specialised grades seeing better demand than in the C4 (butene based) sector, according to several sources.

“Our LLDPE order load is really strong,” said one producer.

Cracker rates, and hence LLDPE output, are cut back. Imports of LLDPE are down following the increase in duty from GCC countries on 1 January 2014.

Europe imports around 90% of its commodity LLDPE, said sources.

MLLDPE pricing was expected to move largely in line with prices in the wider polyethylene (PE) market in May.

Net MLLDPE C6 (hexene based) prices were said to be trading at €1,320-1,380/tonne FD (free delivered) NWE (northwest Europe) in April.

By Linda Naylor