Borealis said Friday it will raise all polyolefin prices for January 2013.
Polyethylene prices will increase by Eur100/mt while prices for polypropylene will increase by Eur75/mt.
"The decision to increase prices is based on the development in the market over the last couple of months that requires us to react," Alfred Stern, Borealis Executive Vice President Polyolefins said.
According to Platts data, low density polyethylene contract prices have fallen from Eur1,562.50/mt ($2,062/mt) FD NWE in September to Eur1,472.50/mt FD NWE Wednesday.
Meanwhile, the feedstock ethylene contract price was at Eur1,300/mt FD NWE in September and remained at Eur1,275/mt FD NWE in both November and December.
Other European producers have similar views. Dow is set to target a Eur160/mt increase for PE prices in January citing tight supplies, sources said.
European converters were uncertain of the market outlook in January.
"Feedstocks have been stable. Europe is still the highest priced market, end demand has not recorded any improvement so there is no fundamental drive for the big increase announced," a converter said.
So far this month, ethylene's feedstock naphtha has averaged at $934/mt CIF NWE, up $3/mt on November's average.
