Market Dynamics
European PP and PE prices rolled over in October for the CIS countries
Time: 2014-10-08 Source from: www.mrcplast.com
European producers of polyethylene (PE) and polypropylene (PP) have left October prices at the roll over from the September level for CIS countries. Only in some cases, prices were slightly increased by EUR5-10/tonne, according to ICIS-MRC Price Report.
October contract prices for ethylene and propylene in Europe remained at the level of September, in spite of the serious decline in the oil price. Given the steady prices of monomers European producers announced a roll over of October export prices for PE and PP from the September level for the CIS markets. There were only in a few cases of the price increase of EUR5-10/tonne for low-density polyethylene (LDPE) and linear low density polyethylene (LLDPE).
Deals for LDPE last week were discussed in the range of EUR1,250-1,310/tonne FCA. Negotiations on October high density polyethylene (HDPE) were carried out in the range of EUR1,170-1,240/tonne FCA. Negotiations for the supply of homopolymer PP were carried out in the range of EUR1,190-1,250/tonne FCA.
Some producers continued to limit export quotas.
In general, ongoing weakening of the euro added advantage to the price cuts. Exchange rate of the euro against the dollar in September was on average at 1.29EUR=1USD, then in the beginning of October, this figure dropped to 1.26EUR=1USD. This factor has lowered the cost of the European polymers in dollar terms by 2%.