Europe MLLDPE players wait for Feb ethylene to settle

LONDON (ICIS)–Metallocene linear low density polyethylene (MLLDPE) players are waiting for the February ethylene contract to settle to give direction to February pricing, sources said on Friday.

Spot prices have already fallen in anticipation of lower levels next month, and activity has slowed down.

There was a lot of speculation surrounding the February ethylene contract, and sentiment was shifting as the euro lost substantial ground against the dollar.

Last week sources had been talking of a potential drop of up to €120/tonne in one case, but this week estimates were around minus €60-80/tonne.

Some producers are expected to target more margin improvement in February, following success in the past three months, but several large buyers said they would push for the full monomer drop, as they were under heavy pressure from their own buyers to drop prices.

Imports would be down in volume, said sources, as the euro was weak, and exports could still be strong. The upcoming Lunar New Year holidays could limit export possibilities, however.

The February ethylene contract is expected to settle next week. Its current January level stands at €880/tonne FD (free delivered) NWE (northwest Europe).