Dow Europe, a subsidiary of international petrochemical giant Dow Chemical, announced a September price increase of EUR50 per tonne for all polyethylene (PE) grades on the European market, a source at the company told ICIS.
According to him, the real increase in PE prices was caused by reduced margins and consistently low material prices in Europe.
In August, there was a moderate upward trend in polyethylene prices, but at the beginning of the second half of the year, the upward momentum was lost and the difference between monomer and polymer prices narrowed.
According to the ICIS-MRC Price Survey, last week the buying activity on the Russian high-density polyethylene (LDPE) market dropped markedly. The sellers sold out all their volumes, and the processors took a break in purchases due to a serious rise in prices. The market is in short supply, and in September the presence of PE on the market will be even worse. On the market for low-density polyethylene (HDPE) in Russia, there was also a decline in demand. The rise in HDPE prices during August was not as serious as for LDPE, but even here it is difficult for some consumers to accept new price levels. However, manufacturers also plan to raise prices for September.
Dow Chemical is an American diversified chemical company headquartered in Midland, Michigan. It is a major manufacturer of polymer products, including polystyrene, polyurethane, polyethylene, polypropylene and synthetic rubbers. The company produces more than five thousand products at 188 production facilities in 37 countries.