LONDON (ICIS)–Some, but not all, European high density polyethylene (HDPE) sellers were hoping to lift prices in August due to a balanced-to-tight supply in some grades and the fact that values remain low compared to Asia.Europe HDPE domestic prices remain low
– Balances mixed, some grades tight
– Fresh import offers too high to work in Europe
– Asia remains better option for exporters
Fresh imported volumes have been offered, but remain generally too high to work. FOB (free on board) levels in the US have been falling but remain too high to work into Europe.
The graph below shows HDPE blowmoulding FD (free delivered) NWE (northwest Europe) spot range – minus 6.5% duties and costs to equate loosely to a CFR (cost and freight) price – compared with the Asian CFR price and US FOB (free on board) price.
HDPE injection spot prices have slightly decreased in spite of talk of higher prices from some sellers, and levels of €1,150/tonne were considered too high to be the low end of the price range.
Sources question the starting-point of discussions at some producers, as a plus €20/tonne – as suggested by some – would mean the starting point must have been very low.