Buyers resist to high LDPE prices

In Italy, the spot LDPE market has moved higher in line with the 30-50 euro/ton hike requests of sellers for April. Spot LDPE values are reported at 1,220-1,260 euro/ton (FD North Italy, 60/90 days deferred payment) over the week. Tight supplies are the main supporter of sellers' price increase targets. The 20 euro/ton increase in the ethylene contract is also providing support.
However, buyers are still hesitant to engage in new purchases at the new high levels. Converters tend to meet their minimum requirements as they do not want to face a loss in case of a shift in the market direction. Some traders and distributors also admit that their sales are quite slow for LDPE. Some even do not prefer to buy LDPE for reselling purposes given such low buying interest. They comment that producers are asking for higher prices due to their tight supplies; however, these prices do not find acceptance amongst buyers.
The slowdown in end product markets, particularly in the packaging sector, is also playing a role in buyers' reluctance to commit to new cargoes, players highlight. Converters are having a difficult time convincing their customers to pay their incremental costs from the previous months and buyers are widely avoiding stock build-ups. (Source ChemOrbis)