Information
| PP/PE/PS/PVC PRICES EUROPE July 13th,2009 |
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Written by bod010
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Tuesday, 04 August 2009 08:10
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Crude oil prices recorded a fall on Friday on concerns that demand for fuel was likely to decline further due to the continuing global recession. The price fall was supported by a strenghtening dollar. Crude oil prices turned bearish on concerns that demand continued to be low for fuel in the USA, the world’s largest energy consuming nation. Confidence levels among US consumers declined to more than what had been forecast. There was a drop to 64.6 in the Reuters/University preliminary index of consumer sentiment for the month of Jun. In March, the index was at 70.8. The fall in crude prices was also supported by a strengthening of the US dollar. There was a rise in the US dollar by 0.5 percent to USD 1.3946 per euro from 1.402 yesterday. The US greenback also rallied against the pound, Swiss franc and Swedish kronor. A strong US dollar prompts investors holding stakes in dollar denominated commodities like crude to offload their stakes, sending price levels down. Crude oil prices turned bearish as the weekly inventory report brought out by the Energy Information Administration (EIA) fro the week ended July 3, indicated that there was an increase in gasoline stocks by 1.9 million barrels last week. Inventories of distillate fuel also grew by 3.7 million barrels which was a more than expected rise by the market. Nymex crude futures decreased to trade at USD 59.89/barrel while Dated Brent spot prices fell to trade at USD 59.40/barrel. WTI Cushing spot prices turned lower to trade at USD 59.89/barrel.Polyethylene
General purpose LDPE contract prices were assessed up at the Euro 1000/mt FD North West Europe levels. Prices were also assessed up in Italy at the Euro 990/mt FD levels. Reports of strength in LDPE prices in the US and Asian markets added to the bullish pricing undertone in Europe’s contract markets. In the spot markets, prices were assessed flat at the Euro 940/mt FD North West Europe mark although offers on Friday were heard at the Euro 960/mt to Euro 970/mt FD levels. Reports did surface of cheaper LDPE avails from Eastern Europe however there was not sufficient proof available in the markets to have any impact on local LDPE pricing trends. The price of debris safety netting wasn’t optimistic likewise.LLDPE CONTRACT PRICES IN EUROPE INCH HIGHERLLDPE contract prices firmed last week in Europe. Prices were assessed up at the Euro 980/mt FD North West Europe levels with FD Italy prices also assessed up at the Euro 970/mt levels. Supporting firmer LLDPE rates were tight regional product avails on the one hand coupled with strength in upstream ethylene prices on the other. Despite softer crude values, contract prices of LLDPE climbed, with additional support seen from improved regional buying interest. According to some players, a marginal lift in economic indicators helped boost the market mood in the European region and brought back into the markets some buyer demand which earlier was languishing by the sidelines. Good news to the market of turf reinforcement. Sellers of LLDPE confirmed that purchase interest was particularly healthy in the cables and wire sectors. In the spot markets, LLDPE prices last week were assessed at the Euro 930/mt FD North West Europe levels.Polypropylene
Contract prices of homopolymer injection moulding grades were assessed up at the Euro 910/mt FD North West Europe mark. PP copolymer prices were assessed up at the Euro 950/mt FD North West Europe levels. Select producers claimed to have achieved July settlements at the Euro 950/mt for PP homopolymer injection grades and near the Euro 1000/mt for PP copolymer grades. With propylene avails expected to further tighten, PP seller confidence was strong. Certainly so was the seller of plastic net bags. In the spot markets PP homopolymer prices were assessed at the Euro 855/mt FD North West Europe levels last week while PP copolymer prices were assessed at the Euro 905/mt FD levels. An individual working for a PP producer when contacted said, “we are determined to restore our margins and hence will continue to push for higher prices going forward.”PP CONTRACT PRICES EDGE UP IN EUROPEAvailability of HDPE in the domestic markets of Turkey was extremely tight with domestic supplies described as ‘irregular’, which made producers of anti bird netting very worried. On account of the constrained supplies of HDPE in the local Turkish markets, domestic producer Petkim has hiked its prices of HDPE twice this month. Price increases have been steep at between USD 70/mt to USD 100/mt. Offers for HDPE from overseas suppliers are also up in July with Middle East sellers hiking their HDPE offers by USD 100/mt from June offer levels. High upstream ethylene prices are seen supporting the price hikes in HDPE. Gallen Net also increased prices to sell windbreak fencing and deer mesh fencing.
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