Improved availability of some PE materials undermined producers’ intentions to push through increases. By the end of the month, there were only price hikes where contract prices were particularly low in the first place.
Most buyers had to fork out no more than the €30 ($35) per tonne rise in the cost of ethylene. Only with LLDPE (C4) film grades were producers also able to push through margin increases due to the limited supply. Fewer imports and the outage of Versalis’ facility at Dunkirk in France had a big impact.
In November, development will have depended on how severe the influence of the force majeure at Borealis was. This is not clear because no details have been given on which types are affected. There could be restrictions only for certain products. In the low-pressure segment, there could be a delay with the LLDPE film grades. A lot depends on when imports start arriving again from the US.
Converters are expected to have held back on purchasing activity during November. Many companies have fairly full order books, but also adequate stocks.