Borealis LLDPE down at Schwechat, Austria

06 June 2008 17:15  [Source: ICIS news]

LONDON (ICIS news)--Borealis’s 350,000 tonne/year linear low density polyethylene (LLDPE) unit at Schwechat in Austria is out of action after experiencing technical difficulties during the week, a company source said on Friday.

“The plant has been running on and off since last week. It is now down for a third time. We will try to start it up again tomorrow afternoon,” the source reported.

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

Increases up to €100/tonne ($156/tonne) were reported for June business, with the prospect of more to come in July. LLDPE gross levels were now above €1,300/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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