The contract price of ethylene in Europe for June supplies was finally agreed at the level of EUR1,015 per tonne, which is EUR35 per tonne lower than the May price, ICIS reports with reference to the bargain participants.

Two manufacturers and two consumers directly confirmed the agreement for the amount of EUR1,015 per tonne, which is the minimum condition necessary to confirm the contract price of the new month.

Decrease in the June contract price of ethylene was expected in the market on the background of a decrease in oil quotations in May.

The contract price is considered fully agreed upon after confirmation from a minimum of two manufacturers and by two consumers.

The contract is coordinated on the basis of free delivery (FD) of northwestern Europe (NWE).

As reported by MRC, the contract price of ethylene in Europe for May delivery was agreed at the level of EUR1,050 per ton, which corresponds to the level of the previous month.

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

According to the Price Review of ICIS-MRC, last week in the Russian PE market was full of drama. After some lull in the market, prices for some types of polyethylene were again falling. Another cheapening of PE led to a serious reduction in demand for polymer. The market remains a serious excess supply of polyethylene, while demand for polymer has declined in many processing sectors. It is the excess supply in recent weeks that is putting serious pressure on prices. For some types of PE, suppliers are revising their prices almost daily.