05 August 2010 17:23 [Source: ICIS news]
LONDON (ICIS)--INEOS’s C6 linear low density polyethylene (LLDPE) plant at Grangemouth in the UK will be down for planned maintenance until mid-September, a company source said on Thursday.
The plant has a nameplate capacity of 320,000 tonnes/year, according to ICIS plants and projects.
The maintenance outage started during the week beginning 26 July.
LLDPE prices were under some downward pressure in August, following the €18/tonne ($24/tonne) erosion in the August monthly ethylene contract price, but product was still considered to be in good balance.
Demand was affected by holidays and some buyers were pushing for a €40/tonne decrease from July.
Production problems at a major metallocene producer had led to some shortages in this sector, and net prices were reported to be firm, at €1,450/tonne FD (free delivered) NWE (northwest Europe).
The upturn in Asian pricing this week, coupled with low inventories with both buyers and sellers in the European market, lent confidence to producers who envisaged a scenario in which prices could increase again in September.
LLDPE buyers had paid increases of around 30% in 2010, and imported volumes, which they had expected to bring some relief, had been slow to arrive.
LLDPE is used mainly in the production of stretch films for the packaging industry.
($1 = €0.76)
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