LDPE polyethylene prices Europe - Arhive
Spot LDPE prices in Europe have fallen to a minimum since 2012 LDPE polyethylene prices Europe
MOSCOW – Spot prices of high-density polyethylene (LDPE) fell in the European market at the end of last week to the lowest level since 2012, and even lower, approaching the level of 2010, ICIS reported citing a statement from some buyers. .
According to them, last week some LDPE prices overcame a barrier of EUR1,000 per tonne, FD NWE (North-West Europe), although not all polyethylene (PE) brands could be purchased at this price. LDPE polyethylene prices Europe
Some price proposals for the material reached EUR1,100 per ton, but it was unclear how many deals were concluded at the above prices.
The demand for LDPE was sluggish at the beginning of this year, and this factor, combined with a fall of EUR40 per ton of ethylene contract price in January, led to an immediate expectation of a decline in PE prices.
2012 was the year when European producers of PE had very low revenues, and part of the production was closed forever. Many of these closures fell on the production of low-pressure polyethylene (HDPE), where the profit was the worst. HDPE is currently a net imported product in Europe. LDPE polyethylene prices Europe
Since then, naphtha quotes have become more competitive, but the production of material from ethane still provides the best revenue.
A decrease in naphtha prices means an increase in the cracking margin, but currently the variation between ethylene and PE prices is very small, even with the most recent ethylene contract price drop of EUR150 per tonne in December and January combined.
At present, negotiations on the January contract prices of PE in many cases have not yet reached their peak. However, the decline in PE prices by EUR20 per ton is already obvious, but buyers believe that this is not enough.
According to the ICIS-MRC Price Review , the first week of January in the Russian market of LDPE was quite active, processors began to replenish their inventories. At the same time, the volume of purchases of LDPE due to the seasonal factor is still small. Some processors are still expecting a reduction in LDPE prices under pressure from low demand and excess supply. In the meantime, following the results of the first working week this year, prices have been rising.
mrcplast.ru
Author: Margarita Volkova