The February contract price of ethylene in Europe has been agreed at EUR70 per tonne higher. Nevertheless, European producers went for a more significant increase in export prices of polyethylene (PE) for supplies to the CIS markets in February under the pressure of a deficit in the domestic market, according to the ICIS-MRC Price Review.

Negotiations on the February price level of European PE started in the middle of last week. All market participants note that European producers have opted for a more significant increase in export prices of ethylene polymers for shipments this month, in some cases the price increase reaches EUR220 per ton. Lack of ethylene and unplanned shutdowns of certain production facilities have seriously reduced the availability of polyethylene in Europe.

The deals for February supplies of high-density polyethylene (LDPE) were concluded in the range of EUR1 310 – 1,360 per tonne, FCA, while a month earlier deals were concluded in the range of EUR 1,140-1,220 per tonne, FCA.

Low-density polyethylene (HDPE) deals were discussed in the range of EUR1 160-1,240 per tonne, FCA, versus EUR 950-1,020 per tonne, FCA, a month earlier.

The price for black pipe PE100 went up from EUR150 per ton to EUR 1,240 – 1,280 per ton, FCA.

Many buyers state serious restrictions on exports from all European manufacturers; some sellers closed all their deals at the end of last week.