Prices of low-pressure polyethylene (HDPE) in Europe are stable after the June increase in prices more than the price of monomer quotations, while supplies have improved, as manufacturers switched to the production of this brand, ICIS reports with reference to market participants.
So, the prices of tubular HDPE in Europe in June increased by EUR75 per ton.
Earlier it was reported that the contract price of ethylene in Europe for June supplies was agreed at the level of EUR1,150 per ton, which is EUR63 per ton higher than the level of May.
This led to the fact that the supply of some brands of HDPE deteriorated, and the prices for them increased. Some large buyers of injection molded HDPE, in particular, complained that supplies are limited, and they have to accept price increases.
For some time, the margin in the tubular HDPE sector was higher than for other brands of HDPE. Prices grew due to high volumes of exports to China. However, demand in the Chinese market began to decline, and although the prices there are still stable, quotations in Southeast Asia began to fall, and stocks of material from buyers and traders are high.
According to the Price Review of ICIS-MRC, in Russia the HDPE market also became balanced in June with a slight drawback in the pipe PE segment. In the local market of natural tubular HDPE, the supply shortage remains. The main reason for the deficit is the limited supplies from Stavrolen and Kazanorgsintez. The PE sellers of Gazprom Neftekhim Salavat said they had already sold all their June quotas.