Europe sellers hope for firmer May ethylene prices

20 April 2007 17:00  [Source: ICIS news]

LONDON (ICIS news)--Spot ethylene prices could increase in Europe in May on cracker outages and healthy derivative demand, sellers said on Friday.

 

One producer said it hoped to secure spot prices of around €1,000/tonne ($1,351/tonne) FD (free delivered) NWE (northwest Europe) pipeline in May, with others saying this was a realistic target.

 

Spot prices were assessed on Friday afternoon at €950-960/tonne FD NWE pipeline, according to global chemical intelligence service ICIS pricing. This was up €10/tonne from the previous week.

 

A spot deal was reported on Friday afternoon for 1,000 tonnes for May at €960/tonne FCA (free carrier) Antwerp.

 

Spot ethylene prices have moved up by €50-70/tonne since mid-March.

 

With three European crackers currently in planned shutdowns, sellers have not been keen on offering additional volumes to the market.

 

Most buyers, however, said that they were well covered ahead of the shutdown season, which was not particularly heavy, one added.

 

Imported material from South Korea and Iran was due to land in Europe in the next two months and was an attractive option for buyers and traders.

 

Despite the recent steady upward trend, ethylene spot levels were still well below October 2006 levels, when business was reported above €1,100/tonne FD NWE pipeline. 

 

($1 = €0.74)

By: Edward Cox
+44 20 8652 3214

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