Italy's polymer markets have started to witness pre-buying activities particularly for PP, PE and PS ahead of the approaching Christmas holidays. As expectations about another round of increases in January are becoming more widespread amongst Italian players because of strong upstream markets, many buyers commented that they are looking to buy additional volumes for the abovementioned products in the spot market albeit in small amounts due to the seasonally low end-product demand. Some PE sellers reported this week that they almost sold out for December as their allocations were already restricted.
Even though converters are not seeing healthy demand in their end product businesses and they find the current local prices high, several buyers commented that they are planning to make new purchases in the days ahead in order to avoid paying further increases when they come back to their desks after the holidays. Increases of ?0-30/ton have been the most common outcome on spot done deals for PP and PE so far while larger increases of ?0-45/ton have passed on PS transactions in Italy. Spot PVC sellers, on the other hand, have had to concede to rollovers or only small increases of ?0/ton this month amidst poor seasonal demand from end-product customers.
Although PVC buyers hope to obtain similar prices next month, many sellers of this product warned their customers that they may reflect this month s rise in ethylene costs on their prices next month. Buyers and sellers in PP, PE and PS markets already agree that additional increases are on the horizon for January given strong feedstock costs, including that of crude oil and naphtha, as well as limited HDPE and LDPE availability across the region. Higher spot propylene and ethylene prices in Europe, which have risen by around ?0/ton and ?0/ton, respectively since the start of December, are providing some ground for sellers hike targets for now.
Even though converters are not seeing healthy demand in their end product businesses and they find the current local prices high, several buyers commented that they are planning to make new purchases in the days ahead in order to avoid paying further increases when they come back to their desks after the holidays. Increases of ?0-30/ton have been the most common outcome on spot done deals for PP and PE so far while larger increases of ?0-45/ton have passed on PS transactions in Italy. Spot PVC sellers, on the other hand, have had to concede to rollovers or only small increases of ?0/ton this month amidst poor seasonal demand from end-product customers.
Although PVC buyers hope to obtain similar prices next month, many sellers of this product warned their customers that they may reflect this month s rise in ethylene costs on their prices next month. Buyers and sellers in PP, PE and PS markets already agree that additional increases are on the horizon for January given strong feedstock costs, including that of crude oil and naphtha, as well as limited HDPE and LDPE availability across the region. Higher spot propylene and ethylene prices in Europe, which have risen by around ?0/ton and ?0/ton, respectively since the start of December, are providing some ground for sellers hike targets for now.
