Bearish polyethylene prices in Asia to affect European market

Polyethylene (PE) prices in Asia continue to go down. Bearish trends in NE Asia have not affected the European PE market, yet; though, the situation in the Asian market is much likely to adjust PE prices in Europe very soon.

High HDPE imports in Asia, launch of new production capacities and sales slowdown in the run-up to the national holidays in China are furthering decrease in PE prices in the region. Last week, HDPE prices went down on average by USD20/mt.

There is HDPE undersupply in Europe in view of scheduled repairs and force-majeure at some sites. The increasing EUR/US$ ratio and lower prices in Asia and America may spur on PE imports from those regions and suspend rise in feedstock prices in Europe.