MOSCOW (MRC) -- This week some European producers have declared growth of polyethylene (PE) export prices for FSU markets, due to rising prices of PE in the Asian market, high oil prices and the coming maintenance shutdowns, according to ICIS-MRC Price report.
Cheap imports from Asia and the Middle East has forced European producers to decrease significantly PE prices for the domestic market in June - July. Two months later after May peak, contract PE prices fell by EUR 120-140/t. A similar price decline also affected the export prices in FSU markets, which were reduced in the first half of July by some producers to EUR 1.050 - 1.120 / t, FCA for LDPE, and EUR 1.020 - 1.100 / t, FCA for HDPE.
In July, Asian markets showed increasing PE demand which along with growing oil prices led to increasing prices of polyethylene. Over the three weeks of July, PE prices in Asia rose by USD 50-80 / t. Growing polyethylene prices in the Asian market made some European producers change their pricing policies. Increasing price trend is also strengthened by the coming maintenance shutdowns of plants in the Eastern Europe, weakening rate of euro against dollar and high oil prices.
As a result, this week some producers from Eastern Europe have raised their export prices of polyethylene. Rising prices of LDPE and HDPE in the second half of July are within the range of EUR 20-80/t.