Most sources do not expect to get away with just the increase in ethylene in February LLDPE purchases, and no producers are willing to confirm such a deal at present. Increases of €120-150/tonne are reported this week, with the low end of the range emanating from buyers, rather than sellers.

Expectations of an increase in the March ethylene contract lends momentum to the price increases of all PE grades, and buyers that want material are given little room to negotiate.

There are pockets of tightness in the C4 LLDPE market in some regions where increases of €150/tonne have been achieved. Some sources put this down to hefty production cutbacks in certain areas and INEOS’s running of MLLDPE at its Cologne plant in Germany. This was not confirmed.
Buyers perceive the current upward rush to be cost-driven rather than because of any fundamental strength in the market, but they are obliged to pay hefty increases nevertheless