Bearish tone hits Europe C2 market
22 October 2007 17:09 [Source: ICIS news]
LONDON (ICIS news)--European spot ethylene (C2) prices were under downward pressure because of an expected increase in supply and upcoming improved cracker operations, market sources said on Monday.
“I tried to sell material last week but there were no takers. I have the idea that falling ethylene prices are a result of confidence in cracker restarts,” said one seller.
A consumer said it was offered 1,000 tonnes on Friday at €950/tonne ($1,357/tonne) FD (free delivered) ARA (
Earlier in October, business was reported at €1,020/tonne FCA (free carrier)
Even at that time, most consumers said they could not afford to pay these prices, adding that it was rather producers who needed additional material to cover short positions.
Future supply would greatly depend on the successful restart of ethylene cracker operations impacting BASF, BPRP and INEOS Olefins, said sources.
If all three crackers were up by the end of October then supply would ease in November and spot prices could tumble, as was the case in December, 2006, said one buyer.
Another consumer said on Monday it was surprised at the lower prices now heard in the market.
“Ethylene supply is no longer tight in
The source added that extremely high oil and naphtha costs made it illogical for sellers to drop spot ethylene prices significantly, when turning down cracker operating rates would be more sensible.
($1 = €0.70)
By: Edward Cox
+44 20 8652 3214
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