19 July 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--European July high density polyethylene (HDPE) pipe resin prices have decreased by €120-140/tonne ($146-171/tonne), but a wider range has been reported in certain pockets as market sentiment firmed in line with crude oil price movements, producers and converters said on Thursday.
HDPE pipe prices for July are assessed at €1,245–1,280/tonne FD (free delivered) NWE (northwest Europe) for PE 100 and PE 80 pipe grades.
Rising oil prices have boosted sentiment in the wider polyethylene (PE) market, and prices seem to have reached the bottom of the current cycle, sources said.
Sentiment turned bullish in early July soon after the July feedstock ethylene contract price decreased by €170/tonne, and pricing ideas for HDPE pipe monthly business became firm as the month progressed.
Price reductions for July monthly business for HDPE pipe have been cited in a wide range of €70-170/tonne in Europe as a result.
Some buyers said they have managed to secure product at a €170/tonne reduction immediately after the drop in the monomer contract price, and before the market focus shifted to the rally in crude and naphtha prices.
Producers have been aiming to limit the reductions to €70-110/tonne. Producer INEOS Olefins and Polymers Europe (INEOS) said it would limit its polymer price reductions to €70/tonne in July.
The HDPE price ranges have been assessed down by €120-140/tonne to reflect the majority of monthly business in July.
HDPE prices are expected to rebound next month as the hikes in crude oil and naphtha prices are expected to push up the August feedstock ethylene contract price.
($1 = €0.82)
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