Europe HDPE pipe will likely rise on expected ethylene increase

25 July 2013 18:46  [Source: ICIS news]

LONDON (ICIS)--European high density polyethylene (HDPE) pipe prices are likely to rise if the August feedstock ethylene contract price increases, buyers and sellers said on Thursday.

HDPE producers are already talking of increases of €20/tonne ($26/tonne) on any purchases made in the remainder of July.

“We have already increased by €20/tonne [for July prices],” one producer said.

“[The market is] not quiet at all, booming like hell, at top of the season,” it added.

The producers said they had seen improved market confidence and higher levels of demand because of better weather conditions across Europe.  

“We have almost sold out so any new volumes for July would incur another €20/tonne hike,” a second producer said.

However, the majority of buyers have concluded their purchasing activity for July at rollovers.

Commenting on HDPE pipe prices ideas for August, it added: “We will see what happens to ethylene [in August] but probably going for a small increment on top of the ethylene [contract price]”.

Buyers also expect to see HDPE prices move up in August if ethylene increases, though not to the same extent.

“We wouldn't expect to pay more than ethylene increase for August,” a buyer said.

($1 = €0.76)

By: Matt Tudball
+44 208 652 3214

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