Buyers and sellers of polyethylene (PE) in Europe are already waiting for the formation of August prices, despite the fact that July deals have not yet been completed, according to ICIS, citing market participants.

Such an early consideration of prices in the next month is connected not only with holidays, but also with the growth of prices for production – naphtha grew by more than EUR20 per ton, after that the July contract for ethylene, which is the main raw material for polyethylene, was agreed.

The July contract for ethylene fell by EUR75 per tonne, which led to a similar drop in polyethylene prices. In general, market participants expect a decline in prices in August against the background of low demand and sufficient supply of most polyethylene grades.

Uncertainty about the trade conflict between China and the United States also continues to cause concern in the market.

According to the ICIS-MRC Price Review, in Russia last week many sellers noted a significant decline in consumer activity. There are several reasons for the decline in sales – from active purchases at the end of June to weak demand for finished products. The downtime of several plants has not yet affected the balance of the local polyethylene market. On the contrary, a decrease in demand led to a surplus of polymer in the market, in particular, LDPE. The decrease in prices of polyethylene from individual sellers continued this week.