In line with earlier ChemCourier forecasts, the December ethylene contract price in Europe remained unchanged. In the first weeks of the month, HDPE suppliers will attempt price increases in an effort to improve margins before year-end. LDPE producers are announcing higher prices at the beginning of December. It is still unclear whether converters will accept these increases; however, interest in purchasing LDPE remains at a satisfactory level. LLDPE prices have reached their floor in Poland and may rebound in December.
Key observations from the last week of November on the Polish PE market:
- A slight decline in demand for HDPE was recorded at the end of November; however, according to traders, November was the best month in the last six months.
- The Serbian producer has suspended polyethylene production due to a lack of feedstock.
- Some traders reported limited availability of US-origin HDPE.
- Trading companies are aiming to sell off HDPE stocks as much as possible by year-end and are therefore offering discounts on those grades that have accumulated in the largest volumes in their warehouses. This factor is currently a major driver of pricing policy, although the average price level remains close to the market. There is a shortage of LDPE from European producers on the Polish market. Converters are increasingly looking for these materials from trading companies, which, however, also do not always have sufficient volumes in stock.
- Trading companies continue to observe growing customer interest in linear polyethylene (LLDPE).
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