Views remain mixed on Europe March HDPE pipe prices

06 March 2014 17:00 Source:ICIS News

LONDON (ICIS)--March prices for high density polyethylene (HDPE) pipe could be down on February because of the €20/tonne drop in the feedstock ethylene contract, sources said on Thursday.

Early indications from both the buy and sell side point to lower prices in March, though it is not clear how much prices may drop.

From the buyer side, initial offers from suppliers are reductions of €10/tonne, but a buyers want more.

“Will try to go for a little more [than €10/tonne]. It’s just a starting point at minus €10, it can go down more, depending on demand”

Suppliers are also talking of reductions for March, but views were varied on the size.

A supplier said reductions could be more than the monomer because it does not see overwhelming demand, though it stressed that demand was not weak.

“If you want to sell, you need to give the monomer and a little bit more, €20-30/tonne [in total for March],” the producer said.

A buyer said its March demand was looking good so far, approximately 10% up March 2013 levels. Milder weather seen for most of 2014 so far has helped construction activity continue throughout winter.

March price discussions continue.

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By Matt Tudball