Prices of polyethylene (PE) in Europe as a whole remained unchanged in September compared with the August level, according to ICIS co reference to market participants.

At the moment, buyers are hoping to achieve a reduction of prices for the supply of the following month. According to them, they hope to reduce the level at USD10-20 per tonne. In turn, retailers aim to increase prices of some grades of PE, especially the price of high-density polyethylene (LDPE).

Most buyers are able to provide itself with the necessary volumes of material in this month. Market participants expect the PE harmonization of ethylene prices in October, to understand what they can expect in the next month. The contract price of ethylene in Europe for the supply in September has been agreed at the level of EUR925 per tonne, which corresponds to the price in August.

Spot prices of PE thus decreased by about EUR20 per tonne in September on the back of weak consumer activity. So, the price of LDPE, and low-density polyethylene (HDPE), after a short growth period again fell back to the level of EUR1 200 per tonne, and sometimes even lower.

According to one of the major manufacturers, its lowest proposal for LDPE was EUR1 230 per tonne in September, while some traders are offering material at a lower price.

However, some market participants believe that the weakening of spot prices is not necessarily be reflected in the contract quotations. In any case, everyone is waiting for negotiation ethylene prices, which is expected this week.

According to the price review ICIS-MRC, in Russia, buying activity in the market is still low, including at the expense of serious subsidence prices. Current problems in the individual plants and prevention of forthcoming Kazanorgsintez not affect the market balance. Excess polyethylene is still not yet and helps the growth of export sales. At the end of last week, continued to decline in prices, the largest drop celebrated LDPE.