Dow Europe, a subsidiary of the international petrochemical giant Dow Chemical, announced an increase in June prices of all grades of polyethylene (PE) in the European market, ICIS said citing a letter from the company sent to its customers.

According to the letter, this increase in PE prices came into force on June 1, 2020 or according to the terms of current contracts.

Buyers said the company informed them of an increase of EUR75 per tonne of linear low density polyethylene (LDL) and EUR100 per tonne of high pressure polyethylene (LDPE).

Currently, the demand for LDPE is the highest due to several production problems, which have led to a reduction in demand. Dow Europe closed its LDPE orders for June at the end of May.

According to the ICIS-MRC Price Review, last week the decline in prices for polyethylene in the Russian market continued, the largest correction occurred in LDPE. A serious reduction in demand for finished products due to quarantine restrictions in the last few weeks is the main reason for the decline in PE prices.

Dow Chemical is an American diversified chemical company headquartered in Midland, Michigan. It is a major manufacturer of polymer products, including polystyrene, polyurethane, polyethylene, polypropylene and synthetic rubbers. The company produces more than five thousand products at 188 production facilities in 37 countries.