An initial May LDPE offer further up

Following the 50 euro/ton increases that have already passed in April in Italy's LDPE market, there is talk about further increases for May. A buyer who was offered West European LDPE at 1,260-1,270 euro/ton (FD North Italy, 60 days deferred payment) for this month also received a May offer from a different West European producer at 1,340 euro/ton (on 15 days deferred payment). So far, the overall April offers are reported at 1,210-1,290 euro/ton with done deals in a narrower range of 1,210-1,260 euro/ton (FD North Italy, 60/90 days deferred payment).
Other buyers are also informed about the possible hike intentions for the upcoming month. They heard that producers will attempt new hikes due to the continuously limited LDPE supply and firm spot ethylene prices. However, buyers are rather concerned about the persistent hikes they are paying. A converter remarked that in case of a further increase next month, they might consider stopping their production given their low end product demand. Another buyer in the packaging sector said that further increases will hurt their business, which is already slow. As their end users have reduced their consumption, they might decide to reduce their PE purchase volumes if prices post new hikes, he added.
Accordingly, an official distributor of a West European producer noted that it may be hard to achieve a larger increase than that of the next ethylene contract given such low demand.  Buyers, in the meantime, generally agree that the LDPE market will not support further increases in the medium term and it might change course starting from June. (Source ChemOrbis)