Spot prices for European low density polyethylene firmed this week, driven by dialed-down operating rates, sources said.
"The only firm offer we got so far this week was from Turkey at Eur1,300/mt ($1,682/mt) FCA Aliaga," a trader said.
"We were trying to source material at Eur1,255-1,270/mt FD NWE, but most of the producers have declared an order stop," another trader said. "New prices are Eur1,290/mt FD NWE and higher."
A converter said: "Two weeks ago I had offers at Eur1,200-1,210/mt FD NWE, and now the best offer I got was at Eur1,280/mt FD NWE."
Sources said that reduced operating rates at European LDPE sellers had led to comfortable inventory positions. Thin margins drove European LDPE producers to cut back production.
Sources said that European converters remained reluctant to build stocks and were merely filling up depleted inventories following more than six weeks of destocking.
LDPE prices were assessed at Eur1,280-1,285/mt FD NWE Tuesday, up Eur35/mt on the week.
Earlier in the day, Turkey's Petkim posted a second consecutive increase in its list prices for LDPE, industry sources said. This followed a similar announcement last week.
LDPE prices were reported at $1,725-1,75/mt FCA Aliaga.
"Market sentiment is more positive. [Some of the European players] have withdrawn offers as prices are firmer there too," a LDPE trader said.
Sources said the uptick in sentiment was not yet reflected in offers -- and was not therefore translating into higher prices -- because converters were not in any hurry to purchase material.
