MOSCOW (MRC) - January contract price of ethylene in Europe was agreed down by EUR130/tonne below the level of the December. Because of such a serious fall in the price of the monomer European producers announced a decrease in the January export prices of polyethylene (PE) for the CIS markets on average by EUR100/tonne, according to ICIS-MRC Price Report.

 

Negotiations on the January price level of the European polyethylene for the CIS markets began last week.

 

This week the discussions for the January deals continued. Most market participants reported that they managed to achieve price reductions for the European PE EUR80-120/tonne, compared with the December 2014.

 

Deals for high density polyethylene (HDPE) were discussed in the range of EUR1,020-1,100/tonne FCA, which down on average by EUR80-120/tonne from the December level.

 

Export quotas at most European producers are limited because of the several reasons. Deals for low density polyethylene (LDPE) were discussed in the range of EUR1,000-1,070/tonne FCA. The effect of the January reduction in export prices was aggravated by the nine years record the weakening of the euro against the dollar.