Europe PE sellers still eye potential hikes for August

LONDON (ICIS)–Several European polyethylene (PE) sellers are still expecting to be able to implement price hikes at the end August, with some higher prices already achieved, they said on Friday.

A number of buyers said they had already achieved rollovers for the month, and this was confirmed by several major sellers.

Some sellers, however, were attempting to lift end-month pricing for extra volumes.

“Most of our business was done at rollover,” said one producer, “but in the second part of the month we are accepting some further volumes with an increase.”

Another producer agreed: “All our business has been done at a higher price,” it said.

Upward pressure was more severe on some grades than others, with some linear low density polyethylene (LLDPE) grades moving up by around €20/tonne, and pressure on C8 (octene based) LLDPE grades stronger.

Buyers were relatively relaxed, saying there was no shortage of any PE grades, and while retroactive business meant that business at some large converters was not yet settled, buyers were not keen to pay more in August.

Spot prices have remained largely stable, mainly because of the lack of business as holidays have taken hold.

Much of the attention is now on September, and sentiment has been that prices could rise next month.

Most PE sources expect a lift in the new ethylene contract price, and any upward move would be transferred onto PE buyers if sellers could manage it, said sources

Demand has been good in August, and some sources put this down to prebuying, as many had already expected an upward trend for September for some time.

Imports were available, but there was still no sign of the huge new capacities coming on stream in North America, but also India.

PE is used in packaging, the manufacture of household goods, and also in the agricultural sector.

Image source: Dinendra Haria/REX/Shutterstock