Spot prices of polyethylene (PE), low pressure in Europe last week were at EUR1 200 per tonne, DDP (Delivery Duty Paid), ICIS reported, citing sources in the market.

The last time at this level they were in March 2015.

Recently in Europe arriving large amounts of PE imports, in particular from the US and South Korea, the sources said. But to determine their real volume is difficult, they add.

Some sources are skeptical about these reports, saying that the same volumes can be offered to many customers, from what it seems on the high-volume, than it actually is.

“If you want to sell PE, you must offer at EUR1 150 per tonne,” – said one trader.

Deliveries of the IPA have been limited in 2015, but now customers can take advantage of more favorable offer from importers.

Local producers have stated that they are not too concerned about the coming imports, as required to operate effectively in the European market.

According to the price review ICIS-MRC, the price situation on the Russian HDPE market last week remained unchanged. PE Supply is more than adequate, with the exception of only a segment of pipe PE. Demand for raw materials is low due to low demand for finished products. Problems remain with the working capital of many processors, a factor that continues to affect the volume of purchases of polyethylene. In the south of Russia’s proposals for the supply of film and blow molding HDPE with a new plant in Uzbekistan – Uz-Kor Gas Chemical voiced at the level of 105,000 rubles / t including VAT, FCA..

In 2015, Russian producers managed to increase high-density polyethylene production volumes to 904 thousand. Tonnes, up 11% from the previous year. Existing capacity for the production of HDPE redundant, and with the expectations of a further reduction in demand, issues of optimizing the production and import substitution Russian manufacturers are becoming more relevant.