ICIS Consulting has launched two new reports that cover the European and US polyethylene (PE) markets. The markets have remained volatile and the 12 month price forecasts are a tool to help mitigate risk and reduce uncertainty.
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David Anderson, Senior Consultant, ICIS said, ‘PE prices remain volatile and we expect this to continue. High oil and raw materials prices, coupled with a slowing demand from developing countries and less than expected growth in the US and Canada, makes trading conditions difficult. The added supply side pressures caused by volatile feedstock prices have compounded the problems faced by traders, producers and buyers a of PE and related products.
‘In both Europe and the US, prices for PE are agreed on a monthly basis, often retrospectively and with volume related discounts. The need for more accurate forecasting of prices is imperative in a supply chain where inventories are held deliberately low to hedge against price volatility, and where powerful customers expect fixed prices for longer periods.’
Fabrizio Galie, Polymers Consultant, ICIS said, ‘these new price forecast reports are an invaluable tool designed to help PE market participants make more confident decisions in the short and mid term. Knowing which way the market is heading makes a real difference when the pressure is on.’
Adapted from press release by Claira Lloyd