Spot prices of ethylene in Europe remain high amid healthy demand, ICIS reports citing market participants.

The recent decline in oil and naphtha prices could have an impact on prices, but concerns about the limited supply are offsetting expectations of a price reduction.

However, some sources said that demand became “weaker” and that some buyers were less inclined to accept high prices.

Other sources said that they were not sure that the downtrend on oil would continue.

Demand and supply remain balanced.

Some manufacturers are preparing for scheduled repairs of their ethylene productions. At the same time, other manufacturers have resumed the work of cracking plants in Germany and France.

Last week, deals were made in the volume of 15 thousand tons of ethylene for delivery in February and March.

Earlier it was reported that the February contract price of ethylene in Europe was agreed at the level of EUR1,077 per ton, which is EUR20 higher than the January level.

According to the Price Review of ICIS-MRC, in Russia there is a low demand in the local polyethylene market, which continues to exert pressure on prices in the domestic market. In most segments of finished products, due to seasonal factors, low demand remains, especially in the construction industry.
The increase in polyethylene prices in foreign markets did not lead to an increase in exports, although for some PE types domestic prices are already lower than for exports in certain areas. Complicates the situation for the export of polyethylene strong ruble.