Buyers pipe grades of high density polyethylene (HDPE) are currently under strong pressure from the increased quotations for the material in February. An increase in the price of the material exceeds the growth of contract ethylene prices in the current month at EUR35 per tonne, sources told ICIS market.

Buyers said that some sellers are aimed at increasing the price to EUR70 per ton, and some large buyers have recognized that in the current month will be difficult to avoid price increases.

Several producers indicated that HDPE pipe is the most popular type among other types of polyethylene (PE), at least in the current year.

Most sources say that demand has increased, but it could be due to a desire to accumulate reserves in anticipation of the start routine prophylaxis in the coming weeks, which is expected to have a material impact on the supply in the market.

Exports from Europe to remain at a high level, which is supported by the current euro exchange rate against the dollar, which contributes to the scope of supply of the material outside the European market. However, the same factor discourages the import volumes on the domestic market.

It should be noted that several vendors were surprised by good activity in the key Chinese market and did not notice her decline even during the celebration of the Lunar New Year, when the market usually freezes.