Rising prices for HDPE pipe is resistance on the part of buyers of the polymer material in Europe. This trend marks the MRC, referring to the information-analytical company ICIS.

Processors do not take the increase in prices for polyethylene pipe (HDPE) in Europe, producers are trying to hold on the background of the increase of raw material quotations – ethylene.

In May ethylene contract prices in Europe rose by € 40 per tonne.

HDPE prices are rising, but buyers are not willing to pay in proportion to the increase in raw material prices, agreeing on a € 20-30 per tonne. According to one of the processors, producers initially voiced proposals by € 60 per tonne higher than in April, but they have made it clear that no one is the rise in prices will not accept.

HDPE pipe manufacturer was able to increase the price difference between the ethylene and polyethylene (PE) in recent months, but weak demand and a wide offer negated this trend in May. The difference in the price of raw materials and the IPA is still good, say market players. Although due to lack of infrastructure construction demand for HDPE injection molding grades declined, it remained high for cable products and household appliances.

A kind of tension in the market gives Ineos production closure in Lilo. Earlier it was reported that the company plans to close for repairs HDPE production in Lilo (Lilo, Belgium) in May for 4-6 weeks. HDPE production capacity in Lilo is 440 th. Tons per year.

we reported yesterday (12 May) that the transaction on May PND shipments to the CIS countries is in the range of € 1210-1280 per tonne, FCA, while the April transactions were concluded in the range of € 1240-1305 per tonne, FCA. Transactions regarding the May supply pipe polyethylene PE100 class consisted in the range of € 1320-1380 per tonne, FCA, broadly in line with the level of April prices.

According to the price review ICIS-MRC, in Russia there is a serious excess of supply in the PND market, the largest excess supply observed in the segment of PE film. Strengthening of the ruble against the dollar led to an increase in imports. At the end of the week it recorded price declines HDPE injection.

In the south of proposals for the supply of blown film and PE Uzbek producers are at the level of 105 000-106 000 rubles. per ton, including VAT, FCA. Cast Uzbek IPA offered on 102 000 rubles. per tonne, FCA Orenburg, and 105 000 rubles. per ton, including VAT, FCA Bataisk.

Thus we can say rising prices for HDPE pipe can have a significant impact on the extent and negative impact on the essence of European industry n pipe production. We will continue to monitor developments.