(ICIS) -- Some European polyethylene (PE) producers are beginning to talk about price hikes for October against a background of subdued demand and an uncertain outlook for feedstock ethylene, market sources said on Monday.
Dow Europe's plans to increase October PE prices by ┬150/tonne ($205/tonne) came as a surprise to many players, but at least one other major producer is considering a similar move. Dow justified its move by quoting unsustainable margins and said it was cutting back production. September PE pricing is still under discussion, and much business is not expected to be settled before the very end of the month.
Producers had begun the month looking for increases but targets for higher prices were swiftly swept aside as it became clear that the level of demand in Europe could not support increases.
Some sellers talk of improved demand as the month has progressed but several large PE converters continue to report order books of only two weeks.