This week, LDPE prices trended higher in the European region.
An industry source in Europe informed a Polymerupdate team member, "Prices remained elevated on the back of a persistently tight supply situation. Buying interest had dampened with limited offers heard throughout the week. Meanwhile, spot trading activity across the European LDPE market was slow, with market participants continuing to return from their summer break. Presently, most players are focused on the outcome of the ethylene contract price settlement in September. Meanwhile, upstream naphtha costs have fallen in August as compared to July. Naphtha price trends, which chiefly determine the course ethylene contract price negotiations would take, could majorly impact the structure of September contract prices."
The source added, “Furthermore, a tight supply situation prevailed in the continent owing to protractedly lower run rates at production facilities. Market sources noted that underlying demand sentiments continued to remain weak. Scheduled cracker turnarounds in September could further tighten material availability."
In the spot markets, LDPE prices were assessed at the Euro 1265-1275/mt FD Northwest Europe mark, a week on week gain of Euro (+20/mt).
In the contract markets, General Purpose LDPE grade prices were assessed at the Euro 1830-1835/mt FD NWE Germany and FD NWE Italy levels, both up Euro (+10/mt) from last week. LDPE General Purpose grade prices were assessed at the Euro 1830-1835/mt FD NWE France levels, a rise of Euro (+10/mt) from the previous week. Meanwhile, LDPE grade prices were assessed at the GBP 1540-1545/mt FD NWE UK levels, a week on week fall of GBP (-10/mt).
FCA Antwerp LDPE General Purpose film prices were assessed at the Euro 1250-1270/mt levels, a gain of Euro (+20/mt) from last week.
Ethylene spot prices on Thursday were assessed at the Euro 900-910/mt FD North West Europe levels, an increase of Euro (+30/mt) from the previous week.
European ethylene feedstock contract price for August 2024 settled at the Euro 1240/MT FD North West Europe levels. This price represents a rise of Euro (+20/mt) from its July 2024 settlement levels.
