The integrated margin in the production of polyethylene (PE) in the US market increased in the fourth week of February, ICIS reported.

Thus, the growth of the integrated contract margin in the production of high-pressure polyethylene (LDPE) from ethane was 1.1%, and with the release of low-pressure polyethylene (HDPE) from ethane – by 1.3%.

Also, the spot margin of production of both LDPE and HDPE in the region increased by 1.6% and 5.5%, respectively.

At the same time, quotations of raw materials – ethane – in the USA fell during the reporting period, as did contract and spot quotations for products from ethane.

At the same time, LDPE spot prices in the US market remained stable during the last week of February, and the HDPE spot prices went up.

According to the ICIS-MRC price review, last week purchasing activity on the Russian PE market was low, processors are in no hurry to replenish their inventories. Partly low demand was due to the short working week, processors moved their purchases to the current week.
Last week’s PE price reduction continued and was more concerned with LDPE. The excess supply of polyethylene in the market persists, but some sellers hope that from the second half of the month the need for PE will grow.