The situation in the market of polyethylene (PE) in Europe remains generally stable, while oil prices have declined, according to ICIS.

In January, there were some changes in prices for some grades of polyethylene (PE), as production at the IQOXE site in Tarragona (Spain) continues to be closed, while the price of Brent crude fell to below USD60 per barrel on Monday, January 27.

Many buyers of polyethylene expect a prolongation of PE prices for delivery in February, negotiations will begin in late January. A sharp drop in oil prices, combined with the fact that most brands of polyethylene are available in sufficient quantities, leaves buyers in a relaxed mood.

Earlier it was reported that on January 14, a severe explosion occurred at a petrochemical plant in Tarragona with a capacity of 104 thousand tons of ethylene oxide per year. IQOXE, the only ethylene oxide producer and monoethylene glycol (MEG) producer in Spain, has still not restarted its ethylene oxide plant in Tarragona (Tarragona, Spain) after the explosion and fire.

According to the ICIS-MRC Price Review, polyethylene in Europe has stopped falling in price, individual sellers are trying to raise prices, but so far this has been happening with varying success. Any increase in prices leads to a decrease in demand, while imports continue to limit the possibility of raising IPA prices. Part of the PE capacity does not work after the explosion in Tarragona (Spain).