Prices of low-pressure polyethylene pipes (HDPE) in Europe reached a maximum since July 201, ICIS cso cited a reference to market participants.

Demand for material in Europe is high and is supported by very large demand in China, where prices are now much higher than USD1600 per tonne, CFR (cost and freight).

European prices of black PE 100 reached an average of EUR 1400 per tonne, FD NWE (north-western Europe), while imported brands of natural PE are sold at an average of EUR1300 per tonne, DDP.

Natural PE brands, usually from imported origin, are not suitable for use in the technological process used in Europe, which have very strict approval procedures.

China’s policy on the production of polymers from coal was the main driver of rising prices for pipe PE, and it is expected that this policy will continue and affect supply in all regions.

Demand in Europe was supported by an increase in the number of infrastructure projects in many areas that are long-term, so demand is expected to continue to be high in 2018.

Some PE 100 production in Europe in 2016 was reoriented for the production of metallocene linear low density polyethylene (LDPE) in 2016, thereby reducing production in Europe when the production margin in this segment was low. Product prices at that time were sometimes just above ethylene, as the economy continued to struggle with the effects of the financial collapse of 2008, when the construction industry suffered particularly badly.