NWE LDPE area costs slide; agreement costs under pressurePosted by Oddershede Poulsen on February 3rd, 2021 European reduced thickness polyethylene place costs dipped today by Eur10/mt ($ 14.86/ mt), shutting Wednesday at Eur1,460-1,465/ mt FD NWE on improved item availability and also slow demand. Upstream power markets also softened today. biocide products shut Wednesday at ,046.25/ mt CIF NWE, down .50/ mt on the week. At the exact same time, agreement biscuit margins improved. The boost in May olefin costs motivated agreement biscuit margins to greater than dual in May from April, shutting Wednesday at Eur157/mt. Turkish item was heard being provided at European major ports at Eur1,350-1,390/ mt CIF, sources said. A converter reported purchasing Turkish item at Eur1,450/ mt FD NWE. European investors and also representatives costs deals were at Eur1,480-1,510/ mt. " The market is worn down with cost boosts," a supplier stated. "The Eur25/mt increase in ethylene May contract price will not likely pass on to polyethylene." Spot prices were consequently assessed down Eur10/mt at Eur1,460-1,465/ mt FD NWE. In Turkey too, area costs pulled back to ,730-1,735/ mt CFR, as availability of Iranian item as well as relaxed need continued to dispirit rates, resources stated. In the UK, place prices were also listened to softer. "Bids have been up to GBP1,250/ mt ($ 2,064/ mt) FD, while selling interest remains at GBP1,270-1,280/ mt FD," a resource claimed. In the April agreement market, converters reported resolving at either rollover or a rise of Eur10/mt. Platts LDPE assessment for April went to Eur1,620-1,625/ mt FD NWE, a Eur10/mt rise for the month. " April was a short month, as well as along with much better schedule of LDPE, we settled either at a rollover or a boost of Eur10/mt with our providers," a converter reported. The May agreement market was still in flux, sources said. A major European producer said it was looking at a decline in agreement costs by Eur25/mt in Europe and GBP50/mt in the UK. " The market is weak," he said. "Gross prices for May for us are Eur1,590-1,595/ mt FD in NWE as well as GBP1,300/ mt in the UK." However some producers were targeting rises. The ethylene May agreement cleared up at record high degrees of Eur1,230/ mt, a rise of Eur25/mt on April. Dow announced an increase of Eur100/mt for LDPE May agreements. Most converters were still to place themselves strongly. "End-user need is slow-moving as well as line of credit are maxed out," a converter said.Like it? Share it! More by this author |