Prices of polyethylene (PE) in Europe may grow significantly in January, according to ICIS, citing market sources.

Thus, the PE vendors warn customers about the three-digit growth of quotations in the next month. Manufacturers want to improve their profitability, regardless of the monomer price increase in January. At the same time, buyers have until some stock material.

Due to the growth of quotations of naphtha December ethylene contract prices increased by EUR45 per tonne. Already it expected to increase in the January ethylene contract prices for EUR30-50 per tonne.

The margin between the ethylene and polyethylene price dropped steadily in recent months. But buyers are skeptical that vendors will implement a three-digit increase in the PE prices in January, as the market may not be as dynamic for that.

According to the price review ICIS-MRC, in Russia, buying activity in the market PE last week was still low enough polymer supply in the market to the maximum allowed processors to delay the purchase of raw materials. Processors prefer not to generate any significant stocks of raw materials in January, including due to the expectation of further price declines.
Also polyethylene demand in some segments of the processing affects the lack of funding from the state (infrastructure projects), and as a result, processors are forced to postpone their purchases until the PE funding.