European PE deals settle lower, further declines anticipated
A distributor based in Germany reported concluding spot deals for two different West European origins with €200/ton declines from August. “We did not secure a large volume of material for September, but we still had to give price reductions in excess of the drop in the ethylene contract before concluding deals as sentiment is bearish and demand is limited,” the distributor stated. Another distributor based in Germany said that they have sold most of their allocations for a West European origin after agreeing to additional €30-60/ton decreases from their initial September prices, bringing their cumulative monthly declines to €120-160/ton. “Demand had been better earlier in the month, but buyers are becoming increasingly cautious about purchasing as they anticipate further reductions in the coming month,” the distributor stated.
In the Netherlands, a distributor said that they concluded spot deals for a West European origin with €70-120/ton reductions from August. “We were able to sell HDPE film with relatively smaller reductions than other PE products due to limited supply for this product. Demand is limited for now as buyers generally anticipate further reductions in October,” the distributor stated.
An Italian converter in the packaging sector said that they concluded their gentlemen’s agreements for West European and South European LDPE film with €150/ton decreases from August. “We were able to secure price reductions beyond the fall in the ethylene contract this month. For October, we anticipate that deals will settle with rollovers or smaller reductions,” the buyer stated. Another Italian converter said that they purchased some localized Middle Eastern LDPE with a €120/ton reduction from last month. “We sourced only a limited volume of material this month as we anticipate further decreases in October, although we expect October declines to be smaller than the reductions we secured for September,” the buyer commented.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Asian PVC sees V-shaped recovery in Q2, what will Q3 bring?
- Will capacity additions cast cloud on ethylene upsurge in Asia?
- US PVC offers in Egypt rise steadily but resistance grows in tandem
- PE buyers’ resistance grows in SEA; duty-free origins more competitive than Mid-East
- Polymer demand cools in Turkey: Is price correction ahead for PP, PE and PVC?
- Local PP, PE markets in Indonesia, Thailand, and Philippines follow imports higher
- Taiwanese major’s July PVC pricing exceeds initial expectations
- China’s rising PET trend takes a pause, but longer-term outlook remains firm
- Dalian Futures Market: PP, LLDPE, PVC, MEG
- Vietnam’s homo-PP market plunges to lowest since 2009