SABIC reports best LDPE offtake in 2 years

06 June 2008 14:38  [Source: ICIS news]

LONDON (ICIS news)--SABIC has seen its best low density polyethylene (LDPE) demand in two years in June, a company source said on Friday.

“We are still only in the first few days of the month, but we are seeing our strongest offtake in 24 months,” the source reported.

LDPE prices were moving up fast for June as upstream costs have led to very low margins for polyethylene (PE) producers.

Increases up to €100/tonne ($156/tonne) were reported for June LDPE business, with the prospect of more to come in July. LDPE gross levels were now around €1,370/tonne FD (free delivered) NWE (northwest Europe).

Brent crude was back up to $129.25/bbl on Friday, and naphtha had rallied back up to $1,045-1,050/tonne CIF (cost insurance freight) NWE.

PE production was reduced in Europe, mainly due to high feedstock costs.

PE producers in Europe include Saudi Basic Industries Corp (SABIC), LyondellBasell, Borealis, Total Petrochemicals, Polimeri Europa, INEOS Polyolefins, Dow and Repsol.

($1 = €0.64)

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By: Linda Naylor
+44 20 8652 3214

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