MOSCOW (MRC) -- Despite the relatively small increase in the April price of ethylene, European producers has announced a major increase in prices of pipe grade high density polyethylene (HDPE). Some producers altogether refused to ship material to the CIS markets in April, according to ICIS-MRC Price report.

 

The April contract price of ethylene in Europe was agreed by EUR55/tonne higher than in March, which led to the same increase in the polyethylene (PE) production costs. However, European producers announced an increase of EUR130-170/tonne from March in export prices of pipe grade HDPE. Such a significant rise in prices was caused by strong demand and tight supply of material in the market, which was due to a number of force majeure shutdowns at some plants and a slump in imports.

 

The April price rise is the second major increase in export prices of pipe grade HDPE in Europe. European buyers of material had to accept price increases of EUR120-170/tonne in March.

 

Negotiations over April shipments of coloured PE100 were held in the range of EUR1,280-1,370/tonne FCA last week. Deals for coloured PE80 were negotiated in the range of EUR1,280-1,340/tonne FCA.

 

Many companies reported that some European producers refused to ship them pipe grade PE in April, citing the lack of available quantities.