The initial contract price of ethylene in Europe for March delivery was agreed at the level of EUR1,057 per ton, which is EUR20 per tonne lower than February, ICIS reported to one producer and one consumer on the market.

The contract price was approved on the basis of FD NWE (with delivery to North-Western Europe).

The contract price is considered fully agreed upon after confirmation from a minimum of two producers (suppliers) and by two consumers.

Thus, the negotiation process on the agreement of the March contract price of ethylene continues.

Earlier it was noted that the contract price of ethylene in Europe for February supplies was finally agreed at the level of EUR1,077 per ton, which is EUR20 per ton higher than the January level.

Ethylene is the main raw material component for the production of polyethylene (PE).

According to the Price Review of ICIS-MRC, the demand for PE in the Russian market is still rather low. Some market participants still expect an improvement in the demand situation in March due to the seasonal factor. This week, negotiations on the March contract prices start, there is a high probability that manufacturers will leave prices unchanged in the segment of low-density polyethylene (HDPE).