One major manufacturer and its two customers in Europe have agreed on an initial ethylene contract price for December delivery on the below EUR45 November Tuesday said ICIS this manufacturer.

Thus, the original contract price of ethylene in the European market was agreed at the level of EUR925 per tonne.

Currently still be confirmed by one of the customers.

The contract price is considered to be completely harmonized after confirmation from at least two producers and from two users.

As reported by the MRC, ethylene contract price for November in Europe it was finally agreed at the level of EUR970 per tonne, which is above the EUR30 October quotations. Contract ethylene price was set on the terms of FD NWE (northwest Europe).

Ethylene is a raw material for production of polyethylene (PE).

According to the price review ICIS-MRC, polyethylene in the Russian market demand is low, but from time to time there are small spikes in demand in some regions. Offer low-density polyethylene (HDPE), the market is still excessive, which has a lot of pressure on prices. In the market of high-density polyethylene (LDPE) manufacturers managed to balance the situation. Last week started negotiations on December level contract price of HDPE. Local companies insist on a serious decline in prices of PE film.