Purchasing activity in the spot market of polyethylene (PE) in Europe is low, but the prices are generally not adjusted this week as traders can not replace other analogue material at reasonable prices, sources told ICIS market.

According to them, now PE prices in the European market are among the lowest in the world, and import volumes are hard to find at reasonable prices.

Prices of high-density polyethylene (LDPE) are probably the highest in comparison with other brands of PE in the spot market, but even here the additional volumes beyond those already contracted parties were offered by some manufacturers, buyers noted.

“The market is oversupply and sluggish demand I was offered the material at lower prices, if I take large amounts.”, – Said one of the buyers.

Another customer also said: “I called the producers and even offered to take a lot of material.”

However, these price proposals were not the lowest in the market: EUR1 250-1 300 per tonne FD NWE (North-Eastern Europe).

Buyers were not inclined to accept these proposals, as the prices were not attractive enough to risk buying additional volumes of material in anticipation of the end of the year.

Some of them said that they are ready to discuss these proposals at lower prices, while others called the price at which they were ready to buy the offered volume – EUR1 200 per tonne.

According to the price review ICIS-MRC, the Russian PE market last week was marked surge in buying activity, local processors traditionally have begun to coordinate the transaction with respect to the November polyethylene supply. At the same time, demand for small polymer, in a long-term decline in prices the processors as possible to limit their purchases. Last week recorded a small rise in prices of LDPE, while the downward trend in the market of high-density polyethylene (HDPE) has continued. PE Supply is still excessive, although some manufacturers have recently increased export volumes.