MOSCOW (MRC) -- The January contract price of ethylene was agreed in Europe down by EUR40/tonne from December. However, European producers did not cut proportionally to the monomer reduction their prices of some polyethylene (PE) grades for this month's shipments to the CIS markets, according to ICIS-MRC Price report.
Negotiations over January PE shipments from Europe to the CIS countries began last Tuesday. A reduction of EUR40/tonne in the contract price of ethylene in the region suggests a similar decrease in PE production costs. European producers reduced their prices of some PE grades by a greater amount than the reduction in the price of monomer. But the price reduction for other PE grades was less than the monomer price decrease. In general, European PE fell by EUR30-50/tonne, depending on the grade.
Thus, deals for January shipments of high density polyethylene (HDPE) were done in the range of EUR1,050-1,075/tonne FCA, for blow moulding and injection moulding PE, down by an average of EUR30/tonne from December. Prices of injection moulding HDPE dropped to EUR1,000-1,030/tonne FCA.
Prices of black pipe grade HDPE of PE 100 grade were in the range of EUR1,220-1,260/tonne FCA, down by an average of EUR30/tonne from December.
Deals for January shipments of European low density polyethylene (LDPE) were done in the range EUR930-985/tonne FCA, whereas last month's deals were done in the range of EUR980-1,035/tonne FCA.