Carmel Olefins begins planned site maintenance closure
ICIS News : 9-Jan-13 10:50
LONDON (ICIS)--Israeli producer Carmel Olefins is in the process of shutting down its polyolefins production and cracker at its Haifa, Israel site for planned maintenance expected to last for around four weeks, a company source said on Wednesday.
The site is in the process of being brought down and will be fully down in a couple of days, said the source.
Carmel Olefins produces 170,000 tonnes/year of low density polyethylene (LDPE) and 400,000 tonnes/year of polypropylene (PP) at the site.
Buyers have been informed of the closure, which comes at a time when major European producers are targeting very heavy hikes of up to 160/tonne ($211/tonne), for January PE business, with more modest targets for PP.
Most sources agree that prices will increase, but this top target, from PE producer Dow Europe, is considered to be overly ambitious.
The market has been slow to start in January and many players, particularly in southern Europe, are only coming back to the market this week. There have been signs of higher spot prices in some PE grades.
Low density polyethylene (LDPE) spot prices have risen to close to 1,400/tonne FD (free delivered) NWE (northwest Europe) on a net basis, from a low of 1,190/tonne FD NWE in mid-November. PP prices have increased more modestly and are currently trading around the 1,260/tonne FD NWE mark on a net basis.
($1 = 0.76)
By Linda Naylor
+44 20 8652 3214