Europe Borealis Swedish LDPE plant back up

23 March 2012 09:51  [Source: ICIS news]

LONDON (ICIS)--Austrian major plastics producer Borealis’s 350,000 tonne/year low density polyethylene (LDPE) plant in Sweden has restarted production following an unplanned outage, a company source said on Friday.

The Borealis plant at Stenungsund on Sweden’s western coast has been down for several weeks because of undisclosed technical reasons.

LDPE availability has tightened considerably in March, as production has been cut back for lack of ethylene in some cases or because of technical problems in others.

Prices have risen by around €130/tonne since February, with net LDPE spot levels now trading in a wide range, centring round €1,400/tonne FD (free delivered) NWE (northwest Europe).

The market is now waiting for the April ethylene monomer contract to settle to give direction to the polyethylene (PE) market in April.

Most sources expect a modest increase in the monomer contract, and PE producers have already made it clear that they will be targeting more margin improvement next month.

Increases in the PE market are mainly cost-driven and due to production cutbacks rather than strong market fundamentals.

LDPE is used widely in packaging and agricultural industries.

($1 = €0.76)

By: Linda Naylor
+44 20 8652 3214

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