Prices of polyethylene pipe (HDPE) in Europe grow in February following an increase in raw material quotations – ethylene, ICIS reported, citing sources in the market.

The contract ethylene prices in Europe increased by EUR35 per tonne in February. Prices are not yet fully harmonized, but while the majority of customers have acknowledged that they will have to accept the price increase in accordance with the contract ethylene prices. They note that they see no reason to pay more.

As reported earlier, some vendors focus on the price increase to EUR70 per tonne.

The market is in deficit of HDPE pipe is not observed, but higher exports and a stronger-than-expected demand contributed to the balance of the market and sellers expect a seasonal surge of activity in the near future. A number of planned outages crackers are expected to support the balance of the market in the coming weeks.

Price promotions on the HDPE pipe from the Middle East to other regions increased by USD100 per ton, compared to January levels.

A trader offering non-dutiable imported PE 100 at EUR1 300 per tonne, DOP.

According to the price review ICIS-MRC, in the Russian market of HDPE pipe is marked oversupply, this factor led to a further reduction of prices on the market.