Prices of low-pressure polyethylene pipes (HDPE) in Europe are falling amid falling prices for the main raw materials – ethylene, ICIS reports with reference to sources in the market.

Unlike the situation in June, when the prices of HDPE fell proportionally to the reduction of ethylene quotations, in July the prices of HDPE show a more pronounced decline than the monomer.

Earlier it was reported that the July contract price of ethylene was agreed at EUR50 per tonne below the level of June to EUR965 per ton.

According to sources in the market, demand and supply for the HDPE are still in good condition.

At the same time, prices on the spot market are still in the bearish trend, although demand has improved. One HDPE producer said July was the strongest month in the last 12 months.

According to the Price Review of ICIS-MRC, the Russian producer Gazprom Neftekhim Salavat from July 1 stopped the production of HDPE for scheduled preventive maintenance for 30 days. Annual production capacity is 120 thousand tons. Stavrolen intends from the 1st of September to stop the production of HDPE for a two-month repair with the modernization of part of the facilities. The annual production capacity is 300 thousand tons.