Europe PE set to follow rise in ethylene price

27 June 2007 12:54  [Source: ICIS news]

LONDON (ICIS news)--European polyethylene (PE) producers were announcing their intentions to raise July contracts after Wednesday’s first third-quarter ethylene settlement, which saw an increase of €35/tonne ($47/tonne) over the second quarter.

  

“We will go straight for the €35/tonne for PE in July,” said a source at INEOS Polyolefins, which produces low density (LDPE) and linear low density polyethylene (LLDPE). “We want to recover an absolute minimum of €35/tonne, with no exception.”

 

A source at Basell said it would be looking to increase July PE prices by €40/tonne. However, buyers were not so confident as suppliers that prices would increase so sharply next month.

 

“We have already paid increases on the back of a higher Q3 ethylene in June,” said one PE buyer, on hearing the news PE producers were looking to recover the ethylene increase.

 

“They have used all their arguments for the monomer increase. Supply is tight but we don’t expect to be paying as much as the full ethylene hike next month,” he added.

 

LDPE prices rose by €20/tonne in June, leaving gross monthly levels at €1,250-1,260/tonne FD (free delivered) NWE (northwest Europe), according to global chemical market intelligence service ICIS pricing.

 

Basell is the world's largest producer of polypropylene and advanced polyolefins products.

 

($1 = €0.74)

By: Linda Naylor
+44 20 8652 3214

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