Demand was mostly subdued last month and with expectations of a sharp price fall in December, converters ordered just enough material to cover their immediate production needs.
December is likely to see more significant price cuts following triple-digit falls in the ethylene, propylene and styrene monomer contract prices.
Initial L/LDPE offers for November emerged with mostly rollovers to modest price hikes following a reduction of €10/tonne in the ethylene contract price settlement. However, as a result of buyer resistance and ample supplies sellers reluctantly accepted that small discounts were inevitable.
LDPE prices fell in line with the ethylene cost reduction while LLDPE prices were down by €15/tonne. Buyers were simply unwilling to pay even modest hikes ahead of the year-end, when most sellers deplete their stocks.
Supply was somewhat tighter than in previous months although material availability was still affected by the restrictions in Germany's Ruhr region and the outage at Sabic's PE plant in Gelsenkirchen, Germany due to an inability to obtain feedstock.
Demand was slow in November as converters started to run down stock levels as the end of year approached.
Most HDPE producers initially went to the market in November with plans to either raise prices by a modest amount or for a price rollover. By and large, most buyers adopted a wait-and-see approach with an expectation that sellers would have to lower offers by end month. Sure enough, HDPE prices edged lower, blow moulding prices fell €15/tonne, injection moulding fell €10/tonne and blown film prices were down €5/tonne.
Material availability was still affected by the restrictions in Germany's Ruhr region and the outage at Sabic's PE plant in Gelsenkirchen, Germany due to an inability to obtain feedstock.
Demand was subdued and most converters started to run down their stock levels as end of year approached.
In December, HDPE prices are expected to see a substantial fall after the ethylene contract price plunged by €110/tonne.