The December contract price of ethylene in Europe was agreed at EUR110 per tonne below November. Nevertheless, European producers are ready to reduce the export prices of polyethylene (PE) for shipments this month to the CIS countries, but not in proportion to the decline in monomer prices, according to the ICIS-MRC Price Review.

Negotiations on the December PE deliveries from Europe to the markets of the CIS countries started this Monday. A decrease in the contract price of ethylene in the region by EUR110 per ton suggests a similar decrease in the cost of production of PE. However, despite the situation on the monomer market, European manufacturers are trying to prevent a decrease in the export prices of PE for the current month for shipments to the CIS countries by more than EUR70 per ton.

In particular, negotiations on the December shipments of low-pressure polyethylene (HDPE) are conducted in the range of EUR1 020-1 095 per tonne, FCA, which is EUR50-70 per tonne lower than the level of November. Some manufacturers still have export restrictions.

Deals on the December shipments of European high-density polyethylene (LDPE) are discussed in the range of EUR980-1 035 per tonne, FCA, whereas a month earlier deals were in the range of EUR1 020-1 080 per tonne, FCA.