Linear Low Density Polyethylene (LLDPE) prices spike in Europe

This week, LLDPE prices quoted higher in the European region.

An industry source in Europe informed a Polymerupdate team member, “Prices trended upward mainly on the back of reduced material supplies as output rates were lowered at plants in the region coupled with limited import offers from overseas suppliers. The gains in prices was also supported by improved demand from the downstream flexible packaging segment.”

The source added, “Producers continue to maintain a cautious outlook as they do not expect demand fundamentals across the PE value chain to improve in the near to medium term. Hence, they are reportedly not keen on building excess inventories which has prompted them to run their plants are reduced run rates.”

The source further stated, “The overall market confidence remains low with a contraction in demand for finished goods as end-consumers continued to deal with macroeconomic headwinds including inflation and high interest rates.”

In the spot markets, LLDPE prices were assessed at the Euro 1135-1145/mt FD Northwest Europe levels, a sharp week on week rise of Euro (+40/mt).

In the contract markets, LLDPE grade prices were assessed at the Euro 1520-1525/mt FD NWE Germany and FD NWE France levels, both higher by Euro (+20/mt) from the previous week. LLDPE grade prices were assessed at the Euro 1520-1525/mt FD NWE Italy levels, a week on week gain of Euro (+20/mt). Meanwhile, LLDPE grade prices were assessed at the GBP 1315-1320/mt FD NWE UK levels, up by GBP (+20/mt) from last week.

FCA Antwerp LLDPE film prices were assessed at the Euro 1110-1140/mt levels, a week on week surge by Euro (+40/mt).

Ethylene spot prices on Thursday were assessed at the Euro 825-835/mt FD North West Europe levels, unchanged week on week.

Feedstock ethylene contract price for September 2023 settled at the Euro 1195/MT FD North West Europe levels. This price represents a sharp gain of Euro 75/mt from its August 2023 settlement levels.