FRIEDRICHSHAFEN, Germany (ICIS)--Market sources were chewing over the possibility of lower polyethylene (PE) prices in November, at the 25th Fakuma plastics fair in Germany on Wednesday.
As long ago as September, sources were expecting prices to fall in November, but doubt was creeping into this certainty as ethylene remains firm and naphtha prices rise.
“I am telling my sales people to keep the faith,” said one reseller. “There is no reason for prices to go down.”
PE supply was well matched to demand, but spot supply was getting long as smaller and medium-sized buyers have managed to build some stock, leading to some erosion in spot prices in recent days.
November ethylene had been expected to slip, but many PE sources now expected prices to remain firm, giving support to PE.
October contracted PE prices have been moving up, but most sellers have not managed to increase the spread between monomer and polymer, as they had initially intended.
Imports were expected to arrive in Europe from new capacities, mainly in North America, but most sources did not expect significant quantities before 2018.
PE is used in packaging, the manufacture of household goods, and also in the agricultural sector.