European low density polyethylene spot prices fell from a 10-month high this week due to profit taking, sources said Thursday.
LDPE prices were assessed at Eur1,362.50/mt ($1,811/mt) FD NWE Wednesday, down from Eur1,382.50/mt FD NWE a week ago.
Buying was stymied by the holiday season in Europe, which also persuaded sellers to offer lower prices, sources said.
In the medium term, however, supply fundamentals favor the bulls, sources said. “Product is tight. You have to wait for a few days for your inquiry to be accepted. Nevertheless, you get the product you request,” a seller said, pegging prices at Eur1,380-1,420/mt FD NWE.
“LDPE is still a little bit tight as we need to honor our better-than-expected contractual nominations,” a European producer said, pegging prices at Eur1,370/mt FD NWE.
“We concluded a deal at Eur1,370/mt FD NWE,” a distributor said. Another distributor pegged prices at Eur1,350/mt FCA NWE.
Asian market sources also said buying interest was thinning, saying prices had been rising too quickly. LDPE prices have surged $90/mt month on month to $1,560/mt CFR China Wednesday, according to Platts data.
European converters said there were lingering concerns about directional bias for prices for next month. “Orders are still just two-three weeks forward, even though we have been a bit busier lately in our printing and lamination film business,” a converter said.
Source: platts.com
