Information
| PP/PE/PS/PVC PRICES IN EUROPE 4-20 |
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Written by bod010
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Tuesday, 04 August 2009 06:36
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CRUDE OIL PRICES GAIN AHEAD OF THE WEEKEND STARTCrude oil prices gained on Friday as markets turned optimistic on better than expected quarterly performances by companies and an improvement in the US consumer sentiment. An upward pressure was also exerted on prices on an improvement in the US consumer sentiment Index which rose to 61.9 as compared to 57.3 in March. The upsurge in the index has been brought on by an increase in stock prices and hopes that the worst impact of the recession may be over. An increase of 59.0 was being foreseen in the index by economists. Polyethylene
LDPE CONTRACT PRICES IN EUROPE CLIMB. SPOT PRICES HOWEVER DECLINELDPE contract prices in Europe last week were assessed up from the week before at the Euro 920/mt FD North West Europe levels. Prices were up despite reports of subdued regional buying interest.Spot prices of LDPE declined as buying interest dulled and regional offers from traders remained ample. On Friday last week, FD North West Europe spot prices of LDPE general purpose were assessed at the Euro 800/mt mark, down from Euro 825/mt FD assessed the week before. Spot offers at the Euro 800/mt FD mark do not interest us at all. Buyers are seeking LDPE at the Euro 750/mt FD levels however as yet there are no successful reports of trades at these price levels. Several sellers who were hoping for a market revival in LDPE post the Easter holidays have found that buying trends continue to remain sluggish. LLDPE SPOT PRICES IN EUROPE EDGE HIGHER AS POST EASTER DEMAND LIFTSLLDPE contract prices in Europe were assessed unchanged last week at the Euro 860/mt FD North West Europe levels.In the spot markets, prices were seen climbing as post Easter demand for LLDPE improved. LLDPE spot prices in Europe were assessed up at the Euro 785/mt to Euro 795/mt FD North West Europe levels on Friday last week. Buyers and sellers meanwhile were divided in their outlook regarding pricing trends in LLDPE going forward. While sellers of LLDPE insisted that they would continue to press for higher prices for May, buyers were preparing to resist further increases, citing low finished product sales and falling prices of PE in Asia as reasons to justify their bearish stand. For example, prices of deer mesh fencing in China are low. Polypropylene
PP PRICES END FLAT IN EUROPEPP prices in Europe held steady last week. In the contract markets, homopolymer injection grade PP prices were assessed flat at the Euro 820/mt FD North West Europe levels. In the PP copolymer markets, contract prices were assessed at the Euro 840/mt FD North West Europe levels. Buyer interest in PP post the Easter holidays failed to show any convincing signs of lifting hence compelling sellers not to attempt price hikes and instead to hold their prices steady.In the spot markets too, PP prices finished flat. Homopolymer PP grades were assessed unchanged at the Euro 720/mt FD North West Europe levels while PP copolymer prices were assessed at the Euro 770/mt FD North West Europe levels. European PP buyers attributed the inability of regional sellers to steer higher their offers last week to softening buying interest in Asia. Export opportunities for European PP to Asia diminished and this wielded some downward pressure on prices. Sellers in Asia have more market, they can sell more their products, like window screen, plastic net bags and so on. Polystyrene
PS PRICES RECORD GAINS IN EUROPEPS contract prices were assessed up in Europe last week. GPPS contract prices were assessed at the Euro 950/mt FD North West Europe levels while HIPS contract prices were assessed at the Euro 980/mt FD North West Europe levels.Buyers of PS were not seen taking well to the planned hike of Euro 100/tm announced by producers like BASF and Total. For April, buyers were convinced that demand would soften and they informed sellers that a price hike may find acceptance in May, a month when seasonal demand for applications like food packaging was expected to lift. Producers though remained determined to push through with an immediate price hike. Unable to work with any further margin reductions, PS makers across Europe united and pressed for rate hikes. They were confident that the month of May would see PS demand turn robust and rather than concentrate all of the targeted price increases in May, part increases should be initiated from April. In the spot markets GPPS prices were assessed up at the Euro 755/mt FD North West Europe levels while HIPS prices were assessed up at the Euro 800/mt FD North West Europe levels. Poly Vinyl Chloride
PVC PRODUCERS IN EUROPE SEEK CONTRACT PRICE HIKESPVC prices in Europe last week were assessed flat. Suspension grade PVC contract prices on a North West Europe basis were assessed at the Euro 690/mt FD levels. Sellers were however seeking increases citing tight regional availability of product on the one hand coupled with gains in upstream EDC and VCM prices on the other.Sellers could have pressed for an increase last week itself but because of the extended Easter holidays in some parts of Europe, the buying mood was dull. This week however they will press for a price increase in PVC contracts and spot offers. Although demand for PVC in Europe is presently not robust, tightness in the upstream chlorine markets has resulted in production cut backs in PVC which in turn justifies a price hike according to sellers polled. PVC sellers in Europe are also citing gains in Asian prices which in their opinion will work toward pressuring prices in Europe higher going forward. Acrylonitrile Butadiene Styrene
ABS PRICES IN EUROPE MARCH HIGHERABS prices in Europe both in the contract and spot markets gained last week. Prices edged up despite softer SM prices.Higher upstream ACN and butadiene rates appear to have supported sellers in their efforts to hike their offers as general purpose and natural grade ABS contract prices were assessed up at the Euro 1190/mt FD North West Europe levels while in the spot markets, prices were assessed up at the Euro 1240/mt to Euro 1250/mt FD North West Europe levels. Ave colour grade contract prices increased Euro 10/mt to finish the week at Euro 1515/mt. Sellers of ABS were targeting more ambitious hikes last week however, post Easter holiday demand failed to live up to expectations, hence the increases were kept in check. Those ABS sellers seeking increases of Euro 50/mt were forced to abandon these lofty price targets and settle instead for more modest up adjustments. Polyethylene Terephthalate
Other NewsMAINTENANCE SCHEDULE OF TDI PLANT OF ELASTOGRANThe toluene diisocyanate (TDI) plant operated by Elastogran, Germany is slated to be taken offstream for a maintenance turnaround.Located ar Schwarzheide, Germany, the plant has a production capacity of 55,000 mt/year. The plant will be taken offstream on April 17 for a maintenance turnaround which will last for a period of around a month. The plant will be brought onstream towards the mid of May. At present, the plant is running at 80 percent of production capacity rates. REPSOL TO HALT CARTAGENA PLANT UNTIL MARGINS IMPROVERepsol, the Spanish oil and gas firm, plans to halt operations at its Cartagena plant in the next few days.Located at Cartagena in Spain, the plant has a processing capacity of 100,000 bpd. The company plans to take the plant offstream and will keep it shut until margins improve. The company has decided against running the plant at a loss. The company, however, will go ahead with a 3.2 billion Euro plan to boost production of middle distillates at the same location. BASF PREPARES FOR SHORT-TIME WORKING AT LUDWIGSHAFEN SITEAs a result of the continuing weak economic situation, BASF is assessing in which production plants short-time working will be necessary as of June 1. This assessment is being made on the basis of a provisional agreement agreed as a precaution between the company’s management and employee representatives in January 2009. The situation will be analyzed unit-by-unit in the coming weeks and discussions will then be held with the responsible employee representatives to determine in which production units short-time working will be introduced.Capacity utilization rates at many plants have remained very low since the beginning of the year, and there are no signs of a sustained improvement in orders from key customer industries in the foreseeable future,” said Dr. Harald Schwager, member of the Board of Executive Directors of BASF SE responsible for Human Resources and head of the company’s Ludwigshafen site. Since first reducing production rates in November 2008, BASF has used the advantages offered by its Ludwigshafen Verbund site and has so far been able to avoid short-time working by transferring employees to other units. “At the moment, around 600 employees in Ludwigshafen are working temporarily in other plants. Unfortunately, we are now reaching the limits of what is possible,” explained Schwager. In addition, the company is also examining further possible measures in the event that the situation does not improve in the second half of the year. This includes, for example, the extension of short-time working beyond production units.
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