The December contract price of ethylene in Europe was agreed at EUR 32 per tonne higher than the level of November. Nevertheless, European producers of polyethylene (PE), for the most part, did not go to reduce PE export prices for supplies to CIS markets in December, according to the ICIS-MRC Price Review.

Negotiations on the December prices of European PE for deliveries to the markets of the CIS countries were launched earlier this week. Many negotiators stated that in the majority of European manufacturers did not increase the export prices of polyethylene contrary to the growth of the price of monomer. The only exception was linear polyethylene, which nevertheless went up by EUR 30 per ton in comparison with the level of November.

The difficult situation with low-density polyethylene (HDPE) prices was in November. At the beginning of the month, manufacturers from Europe went for a price cut, and then in the second half of November there was also another price squeeze. As a result, by the end of the month, the HDI fell to EUR920-1,000 per tonne, FCA.

For December HDPE shipments, European manufacturers came out with offers in the range EUR990-1,070 per tonne, FCA, but in the process of negotiations they were forced to drop prices to the level of EUR980-1,050 per tonne, FCA.

Transactions on shipment of black PE 100 are discussed in the range EUR1 270-1,290 per tonne, FCA, which is EUR 20 per ton higher than the level of November.

Transactions related to the December shipments of high-density polyethylene (LDPE) were discussed in the range EUR1,070-1,180 per tonne, FCA, whereas in November the deals were in the range EUR1,085-1,180 per tonne, FCA.

European producers increased the price only for hexene and octene linear polyethylene (LDL C6 and C8). Deals for December LDL shipments of C6 were in the range EUR 1,310 – 1,420 per tonne, FCA, which is an average of EUR 30 per ton higher than the level of November.