European Low Density Polyethylene Contract Prices Fall on Abundant Supply
European low density polyethylene contract prices closed April down Eur20/mt on the month, shrugging off the Eur10/mt rise in feedstock ethylene's April contract price.
The fall was attributed to feeble demand and abundant supply amid an absence of any production issues.
LDPE contract prices were assessed at Eur1,420/mt, continuing a downward trend seen since the beginning of March, when prices were assessed at Eur1,470/mt (about $1,729/mt).
One source said that the bottom had been reached in the market, but doubted if demand was strong enough to increase prices at this stage.
Looking forward, the market is bullish following the recent uptick in crude and expectations regarding the ethylene contract price.
The Platts ethylene indicator was at Eur1,086/mt Wednesday, a Eur19/mt increase from April's settlement of Eur1,067/mt.
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