PE price tension in the hottest market will contin

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The tight trend of PE price in the market will continue until June

the supply problem of ethylene and PE in recent weeks has led to a sharp rise in PE price. In the past three months, the price difference between ethylene and PE has nearly doubled

high prices began to attract imports. In order to fill the supply gap, several downstream producers have directly imported PE. As a result, downstream producers need to cope with huge costs, but when some PE products are extremely out of stock and the production line is forced to shut down, this is the way for downstream producers to obtain supply

some traders offer spot pallets at high prices. Buyers are worried that the price will drop before the goods arrive in Europe, so some traders use back-to-back letters of credit. A seller who operated like this said, "the customer is too bullying. If I want to guarantee the principal, the DDP delivery quotation must be 1675 euros/ton after tax." A buyer said, "a trader quoted me 1700 euros/ton of high-pressure polyethylene (LDPE)." The buyer did not accept this offer. These prices far exceed the contract prices offered by European manufacturers

the source hopes that the imported goods will arrive one after another to ease the supply tension. However, several market participants said that the start of the Muslim holy month of Ramadan on June 18 may affect the supply from the Middle East

a large number of PE units and cracking units have concentrated on problems in recent weeks, and some people speculate about the reason. A manufacturer said, "the operating rate of these devices has reached 80% for many years. When the force is too strong, the problem erupts."

in addition, the source is still wondering when the price rise will end. Several buyers made it clear that it was difficult to accept the sharp drop in prices because it was difficult to recover the costs caused by the recent price increase

the source said that the tension may continue into the summer, and some people even believe that this phenomenon will continue into the fourth quarter. Others expect tensions to ease in July

pe is widely used in packaging, household goods and agriculture

in late May, although the construction legislatures of many countries in Europe have formulated a series of fire-retardant regulations to increase the price of polyethylene (PE), which has prompted the opening of the arbitrage window, buyers expect the current tight supply momentum to continue until June

some force majeure has been lifted, but the supply of upstream ethylene market has tightened, exacerbating the supply pressure of PE

a large downstream manufacturer said, "in May, we were definitely in deep trouble. In order to ensure production, I tried every means to beg, steal or borrow from one supplier to another."

it is said that some manufacturers are lifting the force majeure and the tension of PE supply has eased, but the main buyers have to cause the change of sensor output voltage and try to get enough goods to supply the corresponding production line in time

according to the source, some PE products bring more problems, and almost all products are affected by the technical failure of polymer or ethylene monomer devices. The buyer said, "for me, all products are restricted."

Nordic chemical (borealis) and versali, with fierce competition, withdrew the force majeure of Schwechat in Austria and Dunkirk in France, respectively. However, the emerging cracking unit problems have affected the supply of ethylene, resulting in the spot transaction price of ethylene being much higher than the contract price. No matter in May or June, it is "youth has a great opportunity". A PE producer said, "we are competing with each other for ethylene resources."

naphtachimie's cracking unit in lavera, France, shut down due to a fire on May 17, and the company declared force majeure on ethylene in the week of May 22. This cracking unit is a 50:50 joint venture between Ineos and total. In the week of May 22, Ineos announced force majeure against low-pressure polyethylene (HDPE) and polypropylene (PP). Total has announced that all its European PP supplies have encountered force majeure

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