Sellers in Italy reported raising PE offers over the past week for the month of February due to the higher ethylene costs for this month. In the case of HDPE film, prices for West European origins are reported at €1150-1180/ton FD Italy, 60/90 days deferred payment.

One trader who concluded deals at €1150-1170/ton in Italy said that they “are selling good volumes of PE.” A source from a producer in the South of Europe commented that they have raised PE prices by €100/ton for February after gaining increases of €80/ton in January. He commented that “demand is not bad this month, while supply is still short.” He said they see no signs of reversal in February so they are expecting more increases in March.

A source at a West European producer echoed these same comments saying they will stand firm on their €100/ton increase for this month because they have short availability and demand is good. He also believes there can be further increases next month.

Only one official distributor of a West European producer admitted that it is difficult to sell material after their €100/ton increase because demand is slow in Italy.

Meanwhile, the view from the Turkish market is in stark contrast. In the month of February, more West European origin HDPE film has come onto the market compared to January. At the same time there is a large difference in pricing with offers into Turkey for West European HDPE film on euro basis standing at €1030-1070/ton CFR Turkey, cash basis. This shows a gap of €120/ton on the low end and €100/ton on the high end when compared to offers in Italy.

Source : www.Chemorbis.com