European low density polyethylene prices were flat on the week as ready availability of material put a lid on potential increases.
LDPE prices have risen 3% on the month to be assessed Wednesday at Eur1,335/mt FD NWE.
By comparison, butene-grade linear low density polyethylene has risen 4% from January levels to be assessed Wednesday at Eur1,245/mt FD NWE.
A number of factors have combined to stem comparable LDPE increases, but the primary drivers seem to be ample availability of material and low demand.
“LDPE is a little more balanced than LL at the moment,” said a source.”We still hear there is imported material available.”
It is this access to readily available material in the market that has allowed some converters to push back against producer-proposed price rises.
“There is a little bit of a fight at the moment between producers and buyers,” said another source.
Producers say declining imports, a strong Asian market and the upcoming European cracker maintenance period all support further price increases.
As a result, they are pushing for a February ethylene monomer increase plus an additional premium in a bid to recoup margins lost in the second half of 2016.
“Producers are pushing prices. But what we are missing is the demand,” said an industry source.
Several sources said the industry is not currently buying more than it needs.
