11 April 2013 15:31 [Source: ICIS news]
LONDON (ICIS)--April price ranges for European high density polyethylene (HDPE) pipe resin were assessed by ICIS on Thursday down €60/tonne ($78/tonne) from the previous month on the back of both lacklustre demand and a €60/tonne decrease in the European April ethylene contract price.
This brought the range for HDPE 100 and for HDPE 80 to €1,470-1,510/tonne FD (free delivered) NWE (northwest Europe).
Both persistent winter weather and poor macroeconomic conditions are taking their toll on requirements for the product.
Demand traditionally improves in March or April along with warmer temperatures. This year a noticeable upturn has so far failed to materialise.
“I’ve not seen any improvement [in demand],” a distributor said. “I haven't had any requests [for volumes], this winter is hard and long. No one's interested. This March is worse than last March. Hopefully it will change soon.”
Furthermore, some participants feel that prices could fall further still.
“We envisage a minimum of €60/down,” a buyer said. “Buyers won’t be happy unless it goes beyond the [April] ethylene drop. People are expecting at least a €60/tonne drop. The supply-demand balance is in buyers favour.”
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