16 May 2013 14:58 [Source: ICIS news]
LONDON (ICIS)-- May price ranges for European high density polyethylene (HDPE) pipe resin were assessed by ICIS on Thursday down €90/tonne ($115/tonne) from the previous month, as a result of a €100/tonne decrease in the region's May ethylene contract price.
This brought the range for HDPE 100 and for HDPE 80 to €1,380-1,400/tonne FD (free delivered) NWE (northwest Europe).
Two HDPE pipe producers finalised negotiations at decreases of €70-90/tonne from April.
Many buyers were seeking the full monomer price fall because of poor demand, but few appear to have attained it.
“I achieved a decrease of €100/tonne,” a buyer said. “Some [buyers] got [a decrease of] €80-90/tonne. If you see the monomer [price] development and demand at the moment, demand is still low.”
While there has been some improvement in demand, it is not as great as expected.
“It’s worse than the same time last year,” the buyer said. “The average across Europe is 10% down from last year, the south [of Europe] is worse. Some pipe producers are running 30% behind last year during the same period.”
However, a steeper price decrease has been limited because of low inventory levels throughout the chain, and the need for buyers to replenish stocks.
A producer said: “There was more resistance [from buyers] to [a decrease of] €70-80/tonne early in the month [because they sought a greater decrease]. Now it’s more accepted. We’ve hit the bottom [in terms of prices]. Their stocks must be low.”
($1 = €0.78)
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