PP, LDPE and PS on the rise on tight supply

The majority of sellers in Italy are reporting higher prices in transactions concluded for PP, LDPE and PS. Even though demand for these products is not spectacular, sellers generally agree that they are able obtain increases over April because the overall supply is limited.
In the PP market, the spot homo PP level has risen by 40-50 euro/ton when compared to average April prices. The market is currently pegged at 1,250-1,360 euro/ton with sellers reporting very low stocks and satisfactory sales, and buyers complaining that prices are overheated. However, buyers are feeling forced to accept sellers' hike requests as some are having a hard time securing their prompt needs from the spot market.
In the LDPE market, sellers generally agree that LDPE demand is not so good. However, they are firmly holding their ground, pointing to low availability. The overall market stands at 1,260-1,300 euro/ton FD North Italy, 60/90 days deferred payment. Some sellers are already sold out for the month while buyers are buying as little as possible in order to avoid such high prices. Many converters who are suffering from being unable to pass their incremental costs on to their customers as well as some resellers hope to see a stable market next month although they are aware that that may be unlikely as long as supplies remain so tight.
Likewise in the PS market, PS sellers are able to apply price hikes of 30-50 euro/ton for May owing to the overall tightness despite the 5 euro/ton lower styrene contract settlement. Some buyers are accepting the hike requests out of concerns of not finding material in the later days of the month. The market is quoted at 1,320-1,380 euro/ton for GPPS and 1,350-1,460 euro/ton for HIPS. Despite plunging crude and lower spot styrene values along with sluggish demand, the market is expected to remain steady on concerns about supply continuity. (Source ChemOrbis)