The contract price of ethylene in Europe for March delivery was finally agreed at the level of EUR1,050 per tonne, which corresponds to the level of the previous month, ICIS informed two sellers and two buyers.
Prolongation of the price is a fair trade-off between a limited supply on the market and the movement of commodity quotations.
The contract price was approved on the basis of FD NWE (with delivery to North-Western Europe).
The contract price is considered fully agreed upon after confirmation from a minimum of two manufacturers and by two consumers.
As MRC reported, the contract price of ethylene in Europe for March supplies was finally agreed at the level of EUR1,050 per ton, which is EUR30 per ton higher than the level of February. For the February deliveries, the contract price of ethylene in Europe was agreed at the level of EUR1,020 per ton, which is EUR35 higher than the level of the previous month. At that time, it became the highest price mark since August 2015.
And in January of this year, the contract price of ethylene in Europe was set at EUR985 per tonne of FD NWE, which is EUR45 higher than the level of December.
Ethylene is the raw material for the production of polyethylene (PE).
According to the Price Review of ICIS-MRC, last week the Russian market of PE was marked by a surge in consumer activity. Against the background of the launch of weighting (load of a car of 8-10 tons) restrictions on cargo road transport, some processors have started to actively create additional stocks of polyethylene. Last week in Russia there was a rise in prices, and their decline