LDPE versus HDPE in Italy

As of the end of the second week of March, some price hikes have started to materialize for LDPE in Italy regardless of the rollover in the March ethylene contracts. The spot LDPE market level has risen by 40-50 euro/ton over late February to 1,160-1,220 euro/ton last week on North Italy (60/90 days deferred payment basis).
Although they lack support from the cost side, sellers have been able to fulfill their hike targets ranging from 20 to 60 euro/ton for LDPE this month. This was mainly because of the continuous tightness for this product. Even though buyers are reluctant to pay sellers' hike requests, they feel that they will have to concede to higher prices due to concerns about not finding enough material. Plus, demand for LDPE remains regular from many end product applications.
Unlike LDPE, spot HDPE deals are rolling over from last month. Competitive prices below 1,100 euro/ton continue to emerge at the low end while offers at and above 1,150 euro/ton are seeing resistance from buyers at the high end. The relative weakness in the HDPE market was attributed to more comfortable availability and relatively slower demand for this product.
For the days ahead, LDPE buyers are unwilling to consent to further price hikes for another month pointing to spot ethylene values, which have been steady since early March. However, tight supplies may continue to encourage sellers to seek increases for another month at least initially, opined others. (Source ChemOrbis)