Polimeri’s Dunkirk LLDPE back on stream

17 November 2010 14:50  [Source: ICIS news]

LONDON (ICIS)--Italian polyethylene (PE) producer Polimeri Europa’s 140,000 tonne/year linear low density PE (LLDPE) plant at Dunkirk, France, is back on stream and running at full capacity following a planned two-month maintenance outage and a subsequent delay that lasted for several days, a company source said on Wednesday.

“The LDPE plant will follow at a later date,” said the source.

Both LDPE and LLDPE were stable to firm in Europe in November. LLDPE commodity C4 grade prices slipped in October because of an influx of imported material, but prices have now stabilised, albeit at lower levels.

LLDPE commodity C4 spot prices were quoted at €1,100-1,150/tonne ($1,486-1,554/tonne) FD (free delivered) NWE (northwest Europe) on a net basis, while some LDPE spot prices were now above €1,300/tonne FD NWE.

This gap between the two grades was unusually large and some sources said they expected it to remain at such a level in future.

Monthly business on a gross basis was reported within a narrower range than for spot, but the former traditional gap of €50/tonne between the grades was fast disappearing.

“LDPE is structurally short,” said a producer. “Demand has been dwindling but so has production and now there isn’t enough LDPE around.”

New capacities in the Middle East and Asia were concentrating on producing mainly LLDPE and high density PE (HDPE) grades.

LDPE prices in Europe were firm and expected to remain so given the current tight supply.

($1 = €0.74)

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By: Linda Naylor
+44 20 8652 3214

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