Europe HDPE pipe players encouraged by better demand

14 November 2013 17:12  [Source: ICIS news]

LONDON (ICIS)--November high density polyethylene (HDPE) pipe prices have slipped by more than the €30/tonne ($41/tonne) decrease of the November ethylene contract in some cases but several sources said on Thursday that they were encouraged by improved demand.

“Demand for PE 100 orange is unexpectedly strong,” said one seller, questioning whether a production issue in Europe could be having an impact on supply.

“We are seeing a positive tendency, even in construction,” said a large HDPE pipe converter, adding that demand in northern European remains better than in the south.

“Demand is better than expected, even in the south,” said another producer.

Economic data from Eurostat showed mild, but positive growth in Europe.

GDP Growth

Q3 2013

Q2 2013

Q3 2012

Eurozone

0.1%

0.3%

-0.4%

EU28

0.2%

0.3%

0.1%

Duty on polyethylene (PE) from the GCC countries (Gulf Cooperation Council), among others,  in January will be lifted from 3% to 6.5% from 1 January 2014.

Linear low density polyethylene (LLDPE) buyers have been showing more concern than HDPE buyers as Europe is a very large net importer of LLDPE from the Middle East, but HDPE sellers are now also expressing concern over the potential loss of margin.

Several sources in the HDPE pipe sector expected import pricing simply to align itself to prevailing market levels.

($1 = €0.74)


By: Linda Naylor
+44 20 8652 3214



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