Europe MLLDPE spot stable, monthly prices settle down
Linda Naylor
21-Mar-2014
LONDON (ICIS)–European metallocene linear low density
polyethylene (MLLDPE) was stable this week while monthly
prices have settled down, more or less in line with the March
ethylene contract, sources said on Friday.
Offers of MLLDPE from South Korea this week were higher than
earlier in the year, and had risen to the mid-$1,700s/tonne
FOB (free on board), according to sources.
Uptake at this level is not strong as it would equate to a
level of around €1,350-1,360/tonne DDP (delivered, duty
paid), they said, and the lowest prices in the European spot
market are currently around €1,330/tonne FD (free delivered)
NWE (northwest Europe).
Linear low density polyethylene (LLDPE) and low density
polyethylene (LDPE) are currently tight, and in spite of
competition between LLDPE and MLLDPE grades, some sellers
expect to be able to lift prices in April. Several producers
have closed March order books.
Spot C6 (hexene based) and C4 (butene based) LLDPE prices
have increased a little from the very low levels of early
March, and some sellers said there could be the possibility
of higher prices in April, even though there could be a
decrease in the ethylene contract price for that month.
The European ethylene market is steady, with the supply and
demand balance improved with signs of better-than-expected
demand for polyethylene (PE). Spot prices are assessed in the
low €900s/tonne FD NWE, still some distance from the
prevailing March contract price of €1,180/tonne.
Because of this difference between spot and contract, some
sources expect the new contract to decrease, which would
inevitably put downward pressure on PE pricing in
April.
A monomer settlement is expected next week.
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