09 August 2007 17:17 [Source: ICIS news]
LONDON (ICIS news)--Allocation on high density polyethylene (HDPE) blowmoulding material from INEOS Polyolefins in Grangemouth in the UK was maintaining upward pressure of €10-20/tonne ($14-28/tonne) on European supplies, market sources said on Thursday.
The 185,000 tonne/year unit has been running at reduced rates since the end of last week, following the unexpected shutdown of INEOS Olefins’ KG cracker at the same site.
With the cracker due to be down for all of August, production of HDPE blowmoulding grade was also going to be limited, with no supply of spot material; and contract volumes kept to minimum possible levels, a company source said.
Blowmoulding has been cited the tightest of all HDPE grades, which also include injection and film material.
Sellers were reporting €10-20/tonne increases for August blowmoulding material, with prices put above €1,310/tonne FD (free delivered) NWE (northwest Europe).
Good demand and low supplier stocks had been the main reasons for firmer prices in July, and sellers said that the outlook for September was already firm.
INEOS Polyolefins also produces 350,000 tonnes/year of C6 linear low density PE from the same site, but output from this line was also running at reduced levels.
($1 = €0.72)
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