Prices for low pressure polyethylene pipe brands (HDPE) in Europe have not yet been finalized for February deliveries, but several quotations have already been registered on the market at the level of the previous month, ICIS reported.

It seems that, despite the season, there is no strong downward pressure, and some market sources say that the demand for material is good.

Last week, China’s key market was calm due to Lunar New Year celebrations, but some market sources were quite optimistic about the fact that demand in the region is growing and that in the near future volumes of material can be exported from Europe.

The Chinese market was closed last week, but even before the Lunar New Year celebration began, price increases were recorded on the market.

It is still too early to say whether a surge in exports to the Chinese market can occur. Meanwhile, in 2018, prices for PND pipe brands in Europe jumped due to an increase in exports to China.

In the wider polyethylene (PE) market, market players are cautious in their purchases of material, since imports come from new facilities in the United States. New capacities for the production of HDPE pipes are also being commissioned, but according to sources, they will mainly produce natural brands. The use of pressure pipes in the EU is limited in favor of approved black PE grades.

Many buyers of all PE brands in Europe want to know how demand will grow when China returns to the market after celebrating the Lunar New Year, as this will affect the situation in all global markets.

According to the ICIS-MRC Price Review, an oversupply in the Russian market of HDPE remains, some sellers have gone for a further price reduction. In addition to oversupply, the market is under pressure from cheap HDPE from Central Asia, in particular from Turkmenistan. In late January – early February, proposals for the supply of natural PE100 were voiced at an average level of 102 thousand rubles. per ton, including VAT, FCA Astrakhan. And last week, sellers have already lowered their prices to 99,000-100,000 rubles. per tonne, including VAT, FCA Astrakhan. However, this PE has not yet entered the market.