European polyethylene contract and spot prices advanced this week, supported by bullish ethylene.
Ethylene spot price have surged this week following historic low cracker margins touched last week. Ethylene spot prices crossed the Eur1,000/mt ($1,276/mt) FD NWE mark this week, for the first time since mid-September.
A spot deal was heard Wednesday at Eur1,060/mt CIF NWE, 2,300 mt for late January delivery, the seller confirmed. Sources in the market reported that some offers were "as high as" Eur1,100/mt FD NWE.
In the polymer contract market, low density PE, linear low density PE and high density PE have so far posted increase of Eur40/mt -- equivalent to the increase in the January contract price for ethylene. The LDPE contract price was assessed Wednesday at Eur1,260-1,265/mt FD NWE Wednesday.
Producers are targeting increases over the Eur40/mt ethylene contract price increase at Eu60-80/mt. "We don't see any other producer being flexible with pricing below an increase of Eur60/mt," one producer said.
Converters said they were eager to buy their January allocation early in the month in the face of rising prices, but were discouraged by flat order books.
Despite a "sleepy" end user market, soaring feedstocks also pulled up spot prices in NWE PE market.
In the LDPE market, spot prices were assessed at Eur1,120-1,125/mt FD NWE, rising by Eur30/mt week-on-week
"The lowest level I was offered this week was Eur1,120/mt FD NWE," a converter reported, adding that sellers were trying hard to push up prices.
A second converter reported the "lowest" offer at Eur1,140/mt, adding that most offers were at Eur1,150-1,160/mt FD NWE.
Sellers reported levels at Eur1,140-1,180/mt FD NWE, some adding that prices were touching the Eur1,200/mt FD NWE level.
"Though prices are moving heavily upwards, by Eur100/mt in some cases, volumes are not showing any improvement," a trader reported.
In LLDPE, spot prices surged to Eur1,080-1,085/mt FD NWE, gaining Eur50/mt on the week. Offers for cast and blown film were heard at Eur1,060-1,080/mt and Eur1,100-1,130/mt FD NWE respectively. "Most offers are at Eur1,100/mt FD NWE," a converter said.
Spot HDPE prices moved higher this week too, as lower offers disappeared from the market. "All HDPE grades are at a minimum Eur1,100/mt FD NWE," a trader said.
In the injection market, offers were heard at Eur1,100-1,150/mt FD NWE, the higher range for imported Egyptian product.
In the blowmolding market, sources pegged values at Eur1,100/mt FD NWE.
In the film market, uni-modal film grade had moved to Eur1,100/mt FD NWE, with bi-modal film in low to mid Eur1,100s/mt FD NWE. Spot prices were assessed at Eur1,100-1,105/mt FD NWE, for both blowmolding and film, representing a rise of Eur20/mt and Eur40/mt on the week.
Injection grade was assessed at Eur1,110-1,115/mt FD NWE a rise of Eur10/mt on the week.
