Basell raises European PE prices by Euro50/tonne

01 October 2001 18:48  [Source: ICIS news]

LONDON (CNI)--Basell announced on Monday it is putting up its European polyethylene (PE) prices by Euro50 ($45.50) a tonne, effective immediately, in another attempt to improve profitability.

The company regards its PE margins as "still unsatisfactory", said Manuel Fraga, its senior vice-president of European PE marketing.

Basell, Europe's largest producer of PE and polypropylene (PP), saw its PE margins eroded over the second and third quarters, especially in low density polyethylene (ldPE).

It attempted to raise its prices by Euro100/tonne at the beginning of September but was unable to make the increase stick, according to Hans-Aubette Schmidt, the company's vice president of PE film operations.

"Specific market conditions and the events of 11 September combined to stop what had been a promising start to the month," Schmidt told CNI. By the end of the month Basell had managed to lift PE prices by only Euro20-30, with ldPE shipping at slightly over Euro800/tonne.

Opportunities to cut PE production in the current weak market have been limited, said Schmidt, though the six-week closure of its Wesseling, Germany cracker for debottlenecking has helped. That cracker comes back onstream on 10 October, after which the company will look for opportunities to cut back at its other sites, said Schmidt.

Basell is a 50:50 polyolefins joint venture owned by German chemical giant BASF and Anglo-Dutch oil and chemicals group Shell.

By: Peter Mitchell
+44 20 8652 3214

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