Polyethylene Buyers in Europe are willing to accept the price increase in January at EUR45 per tonne, which is proportional to the increase in raw material quotations – ethylene in the current month, but the sellers want to raise prices is more significant, according to ICIS, citing sources in the market.

Most buyers have said they are willing to pay the full increase in raw materials in January – EUR45 per tonne. But some sellers want to increase prices to a higher value depending on the brand and manufacturer.

Many deals are still at prices last month, but has been reported to increase PE prices of EUR45 per tonne, which does not allow more margin for producers.

Dealers reported good demand for PE, which is supported by future planned stops for repairs of a number of producers in the first half of the year and the low volumes of imports. Due to the weak euro PE sellers sent volumes in other regions.

European prices were the lowest globally, which has led to a decrease in the supply of some PE grades in January. Since delivery of the linear low density polyethylene based on butene (LDL C6) have become limited, resulting in a significant increase in prices on the spot market in comparison with December.

In addition, spot prices for HDPE blow molding also rose sharply in January in Europe. Europe is currently a net importer of HDPE blow after a series of closures in recent years, as the profitability of the sector was weak.

Market sources believe that the rise in prices in Europe will increase the supply of imports to the region later, but the sellers are optimistic about the first half of this year.

According to the price review ICIS-MRC, in Russia, the first working week of January at the local PE market was very quiet, as part of the processors in late December formed the reserves of polyethylene and is not in need of raw materials. PE market supply in certain segments of the polyethylene is still excessive, despite growth in exports. In addition, the New Year holidays were quite long and the producers and traders have accumulated in that time considerable reserves of PE.