Market Dynamics
European PE prices rose by EUR40-60/tonne for the CIS markets
Time: 2014-07-11 Source from: www.mrcplast.com
MOSCOW (MRC) - European producers have announced price increases for polyethylene (PE) for July delivery in to CIS markets of EUR40-60/tonne, compared with the June level, citing the increased cost of ethylene, according to ICIS-MRC Price Report.
July contract price of ethylene in Europe was agreed up by EUR50/tonne, from the level in June. Given the rising cost of basic feedstock - ethylene, and also because of reduced production volumes, European producers announced a substantial increase in July PE prices for the CIS markets.
Discussions of European PE prices for shipments in July began last week, but some companies were not in a hurry to confirm the price. Deals for low density polyethylene (LDPE) were discussed in the range of EUR1,300-1,380/tonne FCA. Some producers said they have contracted all their export quotas in the first days of sales.
Deals for the July delivery of high density polyethylene (HDPE) were discussed in the range of EUR1,200-1,250/tonne FCA, which was on average up EUR40-55/tonne above the June level. European producers also have reduced exports quotas for HDPE this month.
The supply was tightest for pipe PE100 because of reduced offers for Middle Eastern polyethylene in the region.