Europe PE sellers consider production cutbacks in morose market

Source: ICIS News


LONDON (ICIS)--Europe polyethylene (PE) margins are weak, and some producers are considering cutbacks in production, according to several sources.

Demand has been soft, and spot prices have fallen below the headline ethylene monomer contract in many cases.

Cracker margins are still positive, but the spread between ethylene and PE prices is low.

One producer said the situation is reminiscent of 2011-2012, which led to the permanent shutdown of several PE plants in Europe.

Cracker margins are better than at that time, but the ethylene/PE spread is weak.

PE is used in packaging, the manufacture of household goods, and also in the agricultural industry.