European low density polyethylene, linear low density polyethylene, and high density polyethylene all collapsed on Wednesday on continued weak demand and bearish price expectations, sources said this week.
LDPE and LLDPE were assessed at Eur1,320/mt ($1,438), their lowest since October 30, while HDPE injection was assessed at Eur1,360/mt Wednesday, a low since October 14.
In the first half of January, demand was said to be stronger, and producers firmer in offering a rollover for the polyethylene contract price.
However, on the continued fall of naphtha, market purchasing declined and offers fell to stimulate demand, sources said.
Naphtha CIF NWE cargoes were assessed Wednesday at $282.75/mt, compared with $388.50/mt at the start of the month, and LDPE contract prices fell from Eur1,530/mt to Eur1,502.50/mt over the same period.
Supply was not widely available, according to sources, but the lack of demand was more significant in price developments.
Versalis' force majeure on Riblene, a grade of LDPE from its Ragusa site in Sicily last week, was said to have had little effect on purchasing. "Unless somebody needs a truck today, they won't buy," one trader said.
