Pipe polyethylene (PE) prices in Asia and the Middle East continue to decline due to a general weakness in the economy, expected low demand amid a seasonal factor and a large drop in pipe prices in China, ICIS reports, citing market participants.

This week, black PE 100 prices were at USD1 280-1 340 per ton, CFR of China, which is USD90-100 or about 7% lower than the previous week.

Spot prices this year have been falling since June, market participants have lost hope of a recovery in demand.

The fall in oil futures and the volatility in the LDL futures market resulted in spot prices falling to the level of early 2017, to a peak in demand seen in 2017.

According to the ICIS-MRC Price Review, in Russia, buying activity in the PE market is still low. The supply of polyethylene in the market has increased significantly in a number of sectors of consumption, while the demand due to seasonal factors has decreased. The demand for HDPE pipe has significantly decreased, and in some regions the demand for blown PE has also decreased.