15 November 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--European November high density polyethylene (HDPE) pipe resin prices for monthly business have decreased by €50/tonne ($64/tonne) because of a fall in feedstock costs and slowdown in demand, producers and converters said on Thursday.
November prices are assessed at €1,500–1,540/tonne FD (free delivered) NWE (northwest Europe) for HDPE 100 and HDPE 80 pipe grades.
Demand for HDPE pipe resin has slowed down as piping applications in the construction sector decline during winter, exerting downward pressure on prices.
Consequently, markets had been expecting a bigger fall in HDPE pipe resin prices than the €15/tonne drop in the feedstock ethylene contract price for November, which settled at €1,275/tonne FD NWE.
This is the second consecutive price decrease in the HDPE pipe resin market for monthly business. Prices decreased by €30/tonne in October, following a reduction of €10/tonne in the October feedstock ethylene contract price and a supply overhang.
HDPE pipe resin prices are expected to stay on a downward trend for the rest of the year on slow demand, depending on feedstock price movement.
Market sentiment remains bearish, and this is expected to continue as construction slows in winter. A major pick-up in demand is not expected until spring next year.
HDPE pipe resin prices have been volatile in 2012 with the market witnessing three-digit price hikes and falls in the third quarter.
($1 = €0.78)
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