Low density polyethylene contract prices reached a more than eight-month high Wednesday, following the rise in feedstocks.
LDPE contract prices were assessed Wednesday at Eur1,560/mt ($1,793/mt), up Eur40 on the month. This followed the ethylene contract price fully settling at Eur910/mt FD NWE for May, up Eur40/mt from April.
This occurred amid strong demand and bearish price expectations on the seasonal pick-up in volumes.
Meanwhile, homo injection polypropylene prices rose Eur25/mt Wednesday to a high not seen in five months.
Homo injection PP was assessed at Eur1,205/mt Wednesday. Prices had risen more than the increase in feedstock propylene costs for May.
"We are already seeing a spread improvement [between cost and revenue]," a producer source said this week citing strong fundamentals.
Feedstock propylene's European contract price was fully settled Thursday at Eur635/mt FD NWE, up Eur15/mt from April.
PP supply in Europe is expected to remain limited this month due to maintenance.
Ineos has scheduled maintenance that will begin in May at both its polypropylene sites in Belgium.
