European polyethylene converter sources this week said they were seeking contract price reductions in November, tracing a fall in the feedstock ethylene.
The European ethylene CP fully settled last week at Eur1,095/mt ($1,510/mt) FD NWE, a fall of Eur20/mt on the back on softer naphtha costs and a slow ethylene-derivative offtake.
Producers, on the other hand, were looking to defend increases. While Dow was aiming for a Eur100/mt increase in all PE CPs, other producers were less bullish. "Our ambition is for a rollover to a maximum Eur20/mt decrease for all PE," a producer said. Producer Ineos said it would aim for a "firm" rollover in November for all PE, while SABIC, too, said that it would aim for a rollover on HDPE contracts for November.
Converters, meanwhile, also expected "special deals" to continues, sources said. "They [producers] want to bring down stock levels before December," one converter said. Some converters reported that a few producers were already ready to accept the decline in monomer prices, but this has not been corroborated.
Special deals for both linear low density polyethylene and LDPE for October were heard in the range of Eur1,050-1,080/mt FD NWE, with some sources, expecting lower numbers in November. Special deals had also filtered to high density polyethylene markets, which had been so far insulated from them on account of not being as oversupplied, sources said.
PE contracts were unchanged from October Wednesday, awaiting union of buying-selling ideas, which was not corroborated this week.
Spot prices, however, continued to edge lower this week, refusing to be buoyed by a rise in the Asian prices for HDPE and LLDPE.
In the LDPE market, spot prices were also heard in a range similar to reported special deals at Eur1,050-1,080/mt FD NWE, with some offers still hanging at and above Eur1,100/mt FD NWE. Prices were assessed unchanged at Eur1,075-1,080/mt FD NWE. LDPE sellers, however were cheered by a weaker euro this week, improving prospects of exports.
In the LLDPE market, spot market for butene, offers were heard as 'low' as Eur1,020-1,030/mt FD NWE, while most sellers pegged offers at Eur1,040-1,050/mt FD NWE. Prices were assessed lower by Eur15/mt at Eur1,030-1,035/mt FD NWE. Hexene offers were heard close to Eur1,100/mt FD NWE.
In the HDPE spot market, offers for HDPE film fell to and below Eur1,100/mt FD NWE this week. Film grade continued to underperform relative to injection and blowmolding, on account of imports, sources said. Prices were assessed at Eur1,095-1,100/mt FD NWE, down Eur10/mt this week. In the blowmolding market, sources said that "big volumes" were now available for less than Eur1,100/mt FD NWE, while most offers were pegged at Eur1,120-1,130/mt FD NWE. Prices were assessed at Eur1,110-1,115/mt FD NWE, down Eur5/mt on the week. In the injection market meanwhile, while offers were heard at higher levels of Eur1,150-1,180/mt FD NWE, some were also heard at Eur1,120-1,130/mt FD NWE. Prices were assessed down by Eur5/mt at Eur1,135-1,140/mt FD NWE.
