Spot prices of low-density polyethylene (HDPE) in Europe at the moment against the background of declining revenues of large import volumes of material on the market, sources told ICIS market.

Thus, according to sources, HDPE prices are roughly in the region of EUR1 300 per tonne FD NWE (North-East Europe), and many quotes have even fall below this level.

In 2015, the proposal of the material on the market was very limited, even marked deficits in connection with which some production lines were closed because of the shortage of raw material supply. As a result, buyers took the decision to accumulate stocks of material in order to prevent a similar situation in the future.

At the same time, when the market is stocks, and buyers do not expect an increase in prices in June, some companies are working on the raw material harvested, planning later to replenish stocks cheaper material.

“HDPE prices are the lowest on the background of oversupply in the market”, – said one of the traders.

Thus, according to Eurostat, in March, the external supply of HDPE in Europe amounted to 123.3 ths. Tons in January and February, they were also at a much higher level than in any month in 2015 (in September had the lowest level of deliveries – 72, 1 thousand tons of HDPE)..

Against the background of this increase in import demand fell in May. Many sources attribute this to the large stocks of material at buyers.

According to the price review ICIS-MRC, the Russian market of polyethylene (PE) to a surge in buying activity was observed last week. After long May holidays processors began to replenish their inventories. At the same time, the surge in demand to a greater extent for the high-density polyethylene (LDPE). The market is oversupplied IPA is saved, and this factor is still having a major impact on prices. Thus, reduction of HDPE prices continued under pressure of oversupply and low demand. Fixed decrease in prices of HDPE film and injection.