The initial contract price of ethylene in Europe for September supplies was agreed at the level of EUR995 per ton, which is EUR30 per ton higher than the level of August, ICIS reported to one producer and one consumer on Wednesday.
The contract price was approved on the basis of FD NWE (with delivery to North-Western Europe).
The contract price for September is expected to be confirmed by another consumer.
The contract price is considered fully agreed upon after confirmation from a minimum of two producers (suppliers) and by two consumers.
Earlier it was noted that the contract price of ethylene in Europe for August supplies was finally approved at the level of EUR965 per ton, which corresponds to the level of the previous month.
Ethylene is the main raw material component for the production of polyethylene (PE).
According to the Price Review of ICIS-MRC, in the Russian markets of high-pressure polyethylene (LDPE) and low-density polyethylene (HDPE) last week, prices continued to rise due to a limited supply. Preventive downtime of individual productions affected the local PE market.
The most dramatic situation has developed in the PND market, in the second half of September, the two largest manufacturers will stop their capacities. Some companies have increased the volume of imports, but this factor does not restrain the price increase.