The June contract price of ethylene in Europe was agreed at EUR35 per tonne below the level of May. But European producers of polyethylene (PE) went on a greater decline in export prices than the magnitude of the decline in the cost of ethylene, according to the ICIS-MRC Price Review.

Negotiations on the export prices of European PE for deliveries to the markets of the CIS countries began on Monday. Many negotiators state that in the majority of the manufacturers from Europe are going to a significant reduction in the export prices of polyethylene. In some cases, the price decrease reaches EUR70 per tonne in comparison with the May level.

Transactions for the June shipment of low-density polyethylene (HDPE) are discussed in the range EUR1 050-1,120 per tonne, FCA, whereas the month before deals were in the range EUR1-100-1,190 per tonne, FCA. Negotiations concerning the supply of black black PE100 were conducted in the range EUR1,280 – 1,320 per tonne FCA. Some companies are slow to agree on transactions, hoping to achieve lower prices.

Transactions regarding the June shipments of high-density polyethylene (HDPE) are discussed in the EUR1 110-110 range per tonne, FCA, whereas the month before deals were concluded in the range EUR1,150-1,250 per tonne FCA