23 January 2014 23:59 [Source: ICIS news]
LONDON (ICIS)--European high density polyethylene (HDPE) pipe prices have risen €25/tonne because of higher feedstock costs and better-than-expected demand, buyers and sellers confirmed on Thursday.
Producers initially targeted increases of up to €45/tonne in some cases, but reduced targets during the course of the month. However, producers were adamant about getting increases above the ethylene January contract price rise of €15/tonne.
“In pipe we see €5-10 above monomer increase, so about €25/tonne. It's always difficult to get increase above monomer, but what helps is that demand is very healthy,” a producer said.
“Suppliers offered at the beginning €30-35/tonne increase, and finalised by €20-25/tonne,” a buyer said.
Overall, €25/tonne was seen as the average increase by the market.
“We had a really strong demand for pe 100, there wasn't any winter depression on it, so it's good,” a buyer said.
Warmer weather in most parts of Europe have allowed construction activity started last year to continue into January, boosting demand levels for pipe.
Both buyers and sellers said they were happy with current January demand and hope that the milder weather lasts into February. Even though colder weather and a subsequent drop in demand is expected in quarter one, the good start to the year means 2014 volumes should be improved compared to last year.
Supply levels in the European market are sufficient to meet current demand.
HDPE pipe 100 black grade was assessed at €1,470-1,480/tonne free delievered (FD), northwest Europe (NWE), and HDPE pipe 80 black grade was assessed at €1,470-1,480/tonne FD NWE, according to ICIS.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections