Initial Europe March ethylene contract rolls over at €940/tonne

23 February 2010 15:16  [Source: ICIS news]

LONDON (ICIS news)--An initial Europe March ethylene (C2) contract has rolled over at €940/tonne ($1,288/tonne) due to a flat-to-firmer outlook resulting from unexpected supply issues and expectations that upstream levels will remain firm, a major producer said on Tuesday.

The contract, which was fully confirmed and agreed and on a free delivered (FD) northwest Europe (NWE) basis, was between the producer and one of its customers, a major polyvinyl chloride (PVC) producer.

“Last week, maybe it was possible to do a better level, even though the resistance [to a decrease] was strong,” said the PVC producer, referring to early speculation that ethylene contracts would see a reduction.

However, upstream expectations had firmed because of ongoing refinery strikes in France.

In addition, the ethylene supply and demand balance was looking a little uncertain because of possible cracker problems in Germany and the Netherlands, although the exact nature of the problems was unclear at the time of writing.

Moreover, the PVC producer said that a decrease would not have been a good signal to the market.

“[PVC] prices have just started to pick up a little…Is a reduction good for downstream activities?” asked the PVC producer.

($1 = €0.73)

For more on ethylene visit ICIS chemical intelligence
here to find out more on the European margin reports
To discuss issues facing the chemical industry go to ICIS connect

By: Nel Weddle
+44 20 8652 3214

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index