K Fair ’16: LDPE sellers expected to prefer Asia to Europe as prices slip

LONDON (ICIS)–Linear low density polyethylene C4 (butene based) sellers are expected to prefer Asia as a destination rather than Europe, players said at the K 2016 Fair in Dusseldorf.

European spot prices have slipped back during October, leaving current sales almost at the same level as those in Asia.

 
Traded levels below €1,100/tonne FD (free delivered) NWE (northwest Europe), have not been matched by domestic sellers in Europe, who by and large saw the market as firm.

“I have sold all my volumes and am happy with the results for October,” said one supplier, and most polyethylene (PE) sources expected the fourth quarter to show sustained demand and pricing, as buyers eyed end-year volume discounts.

Traded volumes were harder to sell, according to sources, as prices had to be low for traders to secure volumes.

New production from Sadara were still only available in Europe on a trial basis, but 2017 was expected to see more substantial volumes from this plant.

LLDPE is used in packaging and in the agricultural sector. Europe is a huge net importer of C4 LLDPE.