Europe C2 market firming ahead of Q4 settlements

20 September 2007 15:27  [Source: ICIS news]

LONDON (ICIS news)--Sentiment in the European ethylene (C2) market was firming ahead of the fourth-quarter contract settlements, based on unplanned cracker issues and tight supply, according to market sources on Thursday.

 

A spot deal was confirmed for 2,300 tonnes at €982/tonne ($1,364/tonne) CIF (cost, insurance, freight) ARA (Amsterdam, Rotterdam, Antwerp) up from earlier September price ideas around $1,300/tonne CIF ARA.

 

Concerns over short-term supply have increased after unplanned cracker issues were reported at Dow’s No1 Terneuzen unit in the Netherlands, at Repsol’s Tarragona cracker in Spain and Polimeri’s Priolo unit in Italy.

 

With other crackers in planned shutdown, the market had been tight in recent weeks, said sellers, although most buyers had covered positions ahead of the heavy maintenance period.

 

One buyer was hopeful that short-term issues would not have a major impact of the fourth-quarter contract sentiment but added that high upstream naphtha costs would likely mean some kind of an increase. 

 

“Some sellers are suggesting fourth-quarter hikes of €30-40/tonne but that is too high – maybe plus €15/tonne would be reasonable,’ one customer said.

 

($1= €0.72)

By: Edward Cox
+44 20 8652 3214

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