HDPE indifferent to LDPE surge in Italy

In Italy, sellers are asking for 50 euro/ton increases for April on their LDPE and LLDPE offers in the spot market. Tight supplies and the 20 euro/ton increase in the ethylene contract are the main supporters of sellers in their quest for higher prices. Indeed, it can even be concluded that rather than higher ethylene, tight supplies are giving an upper hand to sellers in their firm stance as was the case in March, when ethylene contracts posted only rollovers. While the LDPE and LLDPE retain their firmness, HDPE continues to draw a steady outlook for April with sellers asking for modest increases of 10-20 euro/ton for this product. In line with the generally bullish sentiment, sellers are encouraged to ask for initial increases; however, they are even aware that the HDPE market is set to rollover due to more comfortable availability. Sellers also report having difficulty making sales for HDPE. The overall PE market is considered slow these days due to end product markets. The recent Easter holiday has also contributed to the slowness as some converters have taken extended holidays. The prevailing market level for spot LDPE is at 1,200-1,260 euro/ton while HDPE film and blow moulding are quoted at 1,080-1,140 euro/ton FD North Italy, 60/90 days deferred payment. The difference between the two PE markets has widened this month with LDPE carrying a premium of 120 euro/ton over HDPE. (Source ChemOrbis)