Purchasing activity in the spot market of polyethylene (PE) in Europe has almost stopped, although sellers are not very concerned about this, as moods for January are optimistic, ICIS reports citing sources in the market.

In December, spot PE prices were stable in Europe, some traders are now withdrawing bids, being sure that prices in January will not be lower.

Some deals were already concluded for January, but most sellers are now waiting for the approval of January contract prices for ethylene, which may affect the prices of PE.

According to the Price Review of ICIS-MRC, December polyethylene prices in the region declined, despite the increase in the price of ethylene at EUR32 per ton, which reduced the margin of polyethylene producers. The margin between polyethylene and ethylene is now at its lowest point since March-April 2015. In early 2018, prices are expected to rise, as low prices in Europe led to a decrease in imports. At the same time, cheap imports of PE from the US based on shale gas have not yet come to Europe