The integrated internal margin in the production of polyethylene (PE) on the European market increased in the third week of January, ICIS reported.

Thus, the growth of the integrated internal margin in the production of high-pressure polyethylene (LDPE) was 3.5%, while the increase in the integrated internal margin for the production of low-pressure polyethylene (HDPE) was 3.9%; The spot margin of LDPE production increased by 6.1%, and by HDPE – by 2.6%.

At the same time, naphtha quotations in Europe went down during the reporting period, as did domestic prices for naphtha products and spot quotes for naphtha products.

Domestic prices of both LDPE and HDPE remained stable in the European market in the third week of January.

According to the ICIS-MRC price review, in Russia the demand for PE in January was low and by the end of the month it decreased even more. Many companies have already closed all their needs for PE in the current month and took a pause until February. Excess supply remains in all segments of consumption, the greatest surplus in the segment of film PE. Last week, amid a surplus, some sellers went for further price reductions. Sellers are trying to sell their quotas as much as possible in order to enter the next month with empty stocks.