Prices for low-pressure polyethylene (HDPE) pipe brands in the European polyethylene (PE) market were among the highest, lower-price quotations rose by as much as EUR15-20 per tonne last week, ICIS sources told the market.

Although demand in the PE market in Europe fell in anticipation of lower prices after the holidays, demand for pipe HDPE remained at a good level. April is traditionally a strong month for tubular HDPE.

Sources say that the processors of pipe HDPE, having infrastructure projects, can not afford to be without material, and this also leads to purchases of good volumes.

Some spot lots were sold at the same prices or slightly higher, and the demand for imported material was also high.

Price sentiments on the broader PE market are prone to rollover, as many buyers resist any uptrend and use PE inventories for our production. Also last week there was a lack of incentives from the upstream market, after last April’s contract prices of ethylene were prolonged since March.

According to the ICIS-MRC Price Review, in February-March, Russian producers went for a serious increase in exports in order to balance the domestic HDPE market. Foreign markets in February were shipped 23.7 thousand tons of HDPE, in March (excluding TC countries) – more than 32 thousand tons. The growth of exports, the lack of the production of HDPE at Nizhnekamskneftekhim and the simple Stavrolen allowed to balance the domestic market. Some positions of PE show insignificant stocks of trading companies, but this is all offset by low demand.