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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