The contract price of ethylene in Europe for December deliveries was agreed at the level of EUR970 per ton amid rising quotations of raw materials, which is EUR10 per ton higher than the level of the previous month, ICIS reported.

The contract price was approved on the terms of FD NWE (with delivery to North-West Europe).

This level of the contract price was directly confirmed by two manufacturers and two consumers, which is a sufficient configuration to approve the monthly contract price for the material.

The prices of raw materials – naphtha – for ethylene production increased in November compared to the level of October by an average of EUR28 per ton, however, the excess supply of ethylene in the market and weak demand lead to large discounts on spot lots of material. Thus, these factors helped reduce the increase in the contract price of ethylene for December deliveries.

It was previously noted that the November contract price of ethylene in Europe was set at EUR960 per tonne, which is EUR30 per tonne below the level of October.

Ethylene is the main raw material component for the production of polyethylene (PE).

According to the ICIS-MRC Price Review, the last week of November did not bring stabilization of the price situation in the Russian market, the cost of polyethylene continues. Some sellers, still in pursuit of sales, continue to actively reduce PE prices. Last week, individual sellers began voicing their proposals for deliveries in December. Negotiations on the December price level started on the contract market. Manufacturers announced a reduction in PE prices, but some processors are unhappy with the magnitude of the reduction in contract prices.