Low stock, tight supply push East Med PE prices up

09 July 2007 08:30  [Source: ICIS news]

SINGAPORE (ICIS news)--Low trader and end-user inventories coupled with tight supply led high density polyethylene (HDPE) and linear low density PE (LLDPE) prices to rise by up to $30/tonne in the East Mediterranean (East Med) region and Pakistan on Monday, traders and end-users said.

 

LLDPE and HDPE film were in great demand but supply was short and a trader reported offers for both PE grades in the East Med at $1,460-1,500/tonne DEL (delivered) from various suppliers.

 

Meanwhile, in Egypt, European offers were heard at €1,070/tonne ($1,446/tonne) CFR (cost and freight). Buying ideas were heard $10/tonne below the offers. In Pakistan, LLDPE and HDPE film cargoes of Middle East origin were heard sold at $1,440/tonne CFR.

 

Limited availability in the two regions was mainly caused by production problems at Eastern Petrochemical’s (Sharq) 750,000 tonne/year LLDPE plant in Al-Jubail, Saudi Arabia, as well as the diversion of Middle East PE cargoes to Europe and Africa, where demand was strengthening, traders and end-users said.

 

Rising ethylene feedstock and crude values also exerted upward pressure on prices. Ethylene rose by $50-70/tonne last Friday to $1,050-1,100/tonne CFR NE Asia (northeast Asia), while crude breached the psychologically significant $70/bbl barrier.

 

($1 = €0.73)

By: Prema Viswanathan
+65 6780 4359

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