Sellers of polyethylene (PE) in the European market informed their customers about price increases in February, ICIS said.
According to buyers, some sellers have already announced an increase in prices of EUR20 per ton for all PE brands.
The current cost of polyethylene is very low, in many cases it is lower than the new contract price of ethylene at EUR970 per tonne, FD NWE (North-West Europe).
One of the manufacturers of PE is planning an even more significant increase in quotations.
The contract price of ethylene for February deliveries remained at the level of December last year, and quotations of crude oil and naphtha have decreased significantly recently, but there is an upward trend in the market, as import deliveries of material from other regions are growing, and the dynamics of prices on world markets in overall higher than European.
According to the ICIS-MRC Price Survey, last week’s buying activity in the Russian PE market was not bad, processors replenish their inventories as needed. Some small consumers intend to carry out their first PE purchases this year only in February.
The decline in prices of polyethylene last week continued, but the dynamics of decline in some species slowed down. In the linear PE segment, prices have been stable lately. Last week, negotiations began on the February contract prices for the material.