The players of the European market for low-pressure polyethylene pipe (HDPE) are expecting price cuts after the July contract price of ethylene was agreed on Thursday at EUR50 per tonne lower compared to the previous month, several market players told ICIS.

The situation on the market for this type of polyethylene (PE) is relatively stable compared to the markets of other brands of PE, and June prices are at a higher level than in the whole PE market, but, nevertheless, lower prices are expected, sources noted.

Purchasing activity in the European market remains lively, there is a steady demand from infrastructure projects, which are the basis for the formation of demand in the market. In this regard, processors do not want to risk the lack of material, and therefore sellers are confident in continuing to purchase volumes in the fall.

According to the Price Review of ICIS-MRC, in June the largest excess of supply in the Russian market of HDPE is observed in the segment of pipe and film PE. From July 1, Gazprom Neftichim Salavat will stop its capacity for 30 days of prevention. Annual production capacity is 120 thousand tons.