Information
| PP/PE/PS/PVC PRICES EUROPE June 29th,2009 |
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Written by bod010
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Tuesday, 04 August 2009 08:36
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Crude oil prices decreased on Friday on a statement by the US government that there was a rise in the US savings rate to the highest level in more than 15 years. Relation of supply and requirement was making an effect. Certainly sale of windbreak fencing was without exception. This trend signifies that economic recovery in the world’s largest energy consuming country will be very slow. Crude oil prices turned bearish after a statement by the US Commerce Department that household savings rate in the US had risen to 6.9 percent, the highest since December 1993. The data led to speculation that the US economy will continue to go further into recession as consumers stay away from making purchases. So stimulating customers’ purchasing desire is necessary and urgent. For example, for debris safety netting product, we can list the usage picture on the Internet and develop use in wider area. There was a fall for the first time in four days in the Standard and Poor’s 500 Index. It fell by 0.2 percent to 918.69. The Dow Jones Industrial Average fell to 8,438.16, a fall of 0.4 percent. The fall in prices was also supported by a rise in unemployment rates in the world’s largest economy. The unemployment rate, which touched a 25 year high of 9.4 percent in May has risen tentatively to 9.6 percent in June, predicted by economists, ahead of the government’s monthly jobs report due to be released next week. Crude prices were also pressured down as the weekly crude inventory report brought out by the US Energy Information Administration (EIA) for the week ended June 19 stated that there was an increase in gasoline inventories by 3.9 million barrels, more than market expectations of an increase of one million barrels. There was a gain in US distillate stocks by 2.1 million barrels, a much larger increase as compared to a forecast of gains of 800,000 barrels. However, there was a drop in crude stockpiles by 3.8 million barrels. Nymex crude futures decreased to trade at USD 69.16/barrel while Dated Brent spot prices fell to trade at USD 68.29/barrel. WTI Cushing spot prices turned lower to trade at USD 69.16/barrel.Polyethylene
In the spot markets however, prices of LDPE gained last week, rising on the back of a combination of bullish triggers including stronger ethylene feedstock rates, a lift in buying interest and on account of tight regional product availability. So was the situation of sale for barrier fencing mesh and deer mesh fencing. Spot prices of LDPE in Europe were assessed up at the Euro 905/mt FD North West Europe mark, up from Euro 880/mt FD North West Europe levels from a week earlier. Even though prices may have been assessed at the Euro 905/mt FD levels in the spot markets, it is hard to find LDPE offers at below the Euro 940/mt to Euro 950/mt FD North West Europe mark. Buyers believe that supplies are severely constrained due to outages at as many as seven LDPE lines in Northwest Europe, East Europe and the Mediterranean region. There was also talk in the markets about producers of LDPE targeting prices at the Euro 1000/mt FD mark for their July contracts. In Turkey, local producer Petkim is reported to have hiked its LDPE prices by USD 80/mt at USD 1285/mt FCA Aliaga. Supporting firmer prices were reports of ethylene contracts for July at the Euro 785/mt FD North West Europe mark, a gain of Euro 80/mt from June values.LLDPE PRICES IN EUROPE GAINLLDPE prices in Europe last week firmed. Contract prices were assessed up at the Euro 910/mt FD North West Europe levels while spot prices were assessed at the Euro 870/mt FD North West Europe levels. Price gains in LLDPE were triggered by strength in upstream ethylene values. July ethylene contract prices settled last week at the Euro 785/mt FD North West Europe mark. This settlement price in ethylene represented a steep gain of Euro 80/mt from previous levels. For the month of July, PE producers were heard targeting hikes of between Euro 100/mt to Euro 150/mt. Buying interest was seen improved in the region while avails of imported LLDPE product was limited.LYONDELLBASELL TO INCREASE PE PRICES IN EUROPEEffective July 1, LyondellBasell Industries will increase prices in Europe by €120 per tonne on all of its polyethylene grades. “Escalating feedstock costs have made this price increase necessary,” said Tassilo Bader, senior vice president for LyondellBasell’s olefins and polyethylene business in Europe, Asia and International.Polypropylene
PP producers polled claimed to have settled their June contracts at Euro 50/mt levels above May settlements. For July, contract price targets would be higher owing to firm prices of propylene feedstock on the one hand coupled with limited PP product availability on the other. Spot prices of PP in Europe meanwhile were seen surging last week. Homopolymer prices rallied to the Euro 810/mt FD North West Europe mark, a steep surge from Euro 750/mt FD recorded the week before. PP copolymer prices were assessed up at the Euro 860/mt FD North West Europe mark. In plant news, Dow was planning to temporarily shut its PP plant located at Wesseling, Germany. The 230 kt/annum was expected to shut before the end of the month as feedstock propylene availability was tight. All these were good and increased confidence in selling PP products—window screen and plastic net bags well.LYONDELLBASELL TO INCREASE PP PRICES IN EUROPE JULY 1STEffective July 1st, LyondellBasell Industries will increase prices by €125 per tonne on its polypropylene grades sold in Europe. “Escalating feedstock and energy costs have necessitated this increase,” said Yves Bonte, Senior Vice President of LyondellBasell’s Polypropylene Business.Polystyrene
For July, PS producer targets continued to remain bullish. Buyers united in their efforts to prevent any further price climb, citing soft demand, however PS makers in Europe were unwilling to face any further margin erosions and were determined to pass on the entire gains in SM contract prices to their PS customers. In the spot markets, GPPS prices were assessed flat at the Euro 900/mt FD North West Europe mark while HIPS prices were assessed at the Euro 945/mt FD North West Europe levels.BASF TO REDUCE POLYSTYRENE CAPACITY IN EUROPE BY ABOUT 15 PERCENTBASF will close one polystyrene plant at the Ludwigshafen site. This will reduce BASF’s annual production capacity for the standard plastic polystyrene in Europe by 80,000 to 540,000 metric tons, what comes up to a capacity reduction of about 15 percent. The main reason for the shutdown is the decrease in demand for Polystyrene. The affected plant, which has been out of operation since mid-April, will be dismantled. Personnel working at this plant will transfer to other positions within the company. Polystyrene will continue to be produced by BASF in Ludwigshafen but it will serve primarily for the manufacture of the two BASF insulation products Styrodur® C and Neopor® (extrusion-based). In the future, orders for Polystyrene from European customers who had previously been supplied from Ludwigshafen will be filled mainly from the plant at BASF’s Verbund site in Antwerp, Belgium. “We are working intensively to restructure our Styrenics business and increase its profitability. In doing so, we are investigating all options in order to strengthen the business on a sustainable basis. This also includes reducing production capacities. We nevertheless still intend to sell this business,” explained Dr. Joachim Streu, head of BASF’s Styrenics business.Poly Vinyl Chloride
Suspension grade contract prices on an FD Germany basis were assessed up at the Euro 770/mt levels while FD Italy prices were assessed at the Euro 760/mt levels. In the spot markets too prices of PVC raced higher with North West Europe FD prices assessed up at the Euro 650/mt to Euro 680/mt levels. For the month of July, European PVC producers are reported to have announced increases ranging from Euro 100/mt to Euro 130/mt. They attributed the upward revisions to gains in ethylene July contract price settlements coupled with gains recorded in prices of EDC and VCM feedstock. Also supporting higher PVC rates in Europe were regional availability constraints.ARKEMA ANNOUNCES A € 120/T PRICE INCREASE FOR ITS ENTIRE SUSPENSION PVC RANGE FROM JULY 1, 2009This price increase has become necessary to offset further rises in raw material costs in recent months, such as ethylene and additonnaly the negative trend of the caustic soda market. All these effects put a huge pressure on chlor-vinyl chain. This price increase will be effective from July 1st, 2009.INEOS CHLORVINYLS S-PVC PRICE ANNOUNCEMENT - JULY 2009INEOS ChlorVinyls has announced a price increase of 130 Euro per tonne for all its S-PVC grades in Europe for the month of July. On the back of strengthening crude and naphtha prices, the cost of ethylene has increased significantly through the year with a sustained squeeze on S-PVC margins. In addition, further decreases in the demand for Caustic liquor has put added pressure on margins in the Chlor-alkali chain. The new price levels will be effective from 1 July 2009.Acrylonitrile Butadiene Styrene
ABS prices were assessed up in line with stronger feedstock costs. SM prices were firmer last week on account of production cuts in Europe. ACN feedstock prices were also pegged firmer, up in tandem with strength in propylene feedstock rates. CIF Med rates of ACN were assessed up at the USD 1240/mt levels. Finally, prices of butadiene last week in Europe also gained. Spot butadiene rates were assessed at the Euro 620/mt FD North West Europe mark. There were reports that Q3 contract prices were near to settling at the Euro 600/mt FD North West Europe levels. If confirmed, it would represent a steep climb from Q2 settlements at the Euro 400/mt FD North West Europe levels.Polyethylene Terephthalate
In Europe, buyers claimed to have settled their June contracts at levels below those seen in May. Weak demand coupled with ample availability favoured the buying community and pushed struggling sellers of PET to drop their offer prices in an effort to conclude deals. In plant news, the 100,000 mt/annum PET plant of Artenius located in Spain continued to remain shut. The plant was shutdown about three weeks ago due to some technical issues. There was no word on when this plant was expected back up.Other NewsOX PRICES IN EUROPE DOWN ADJUSTOrthoxylene (OX) prices in Europe ended last week down. Prices of OX fell as buying sentiments turned sluggish in the region. Spot prices of OX were assessed at the USD 785/mt to USD 795/mt FOB Rotterdam levels, a decline of about USD 15/mt from the previous weeks assessed levels. OX sellers were reluctant to drop their prices any further as OX contract prices for June in Europe settled up at the Euro 620/mt levels. OX sellers cited these higher contract settlement prices while offering spot cargoes in the markets, however buying interest was at a complete standstill thereby wielding downward pressure on seller offer targets. Supporting the softer prices of OX in Europe was the weakness noted in downstream prices and demand of PA.SOLVENT GRADE MX PRICES IN EUROPE DECLINESolvent grade MX prices in Europe declined last week. Prices fell by more than USD 20/mt, dropping in tandem with a slide in upstream 10 ppm gasoline values. Reports that gasoline prices tumbled near about USD 100/mt to below the USD 638/mt mark between June 16th to June 23rd, dragged prices of MX lower in Europe. Buyer bids for MX late on Friday were heard down at the USD 760/mt mark and below. Sellers kept their price offers at the USD 790/mt FOB Rotterdam mark, however they were unable to find buyers at these high price levels. Buyers meanwhile brushed off the high price offers, attributing their reluctance to purchase to soft regional prices of PX.PETROHEMIJA TO HALT PRODUCTION OVER LACK OF FUNDSAn industry source based in Central Europe described the current production status of Serbia’s main petrochemicals producer, Petrohemija. The source said, ”located in the town of Pancevo, 13 kilometres (8 miles) north of Belgrade, the state-run company is Serbia’s main petrochemicals producer. The company plans to halt production for around one month on account of lack of funds to buy its main raw material, gasoline. The company owes about 200 million euros to its raw materials suppliers including Naftna Industrija Srbije (NIS) and Serbia’s branch of Lukoil. The two companies have stopped gasoline deliveries to the company due to building debt.” The source added, ”the company anticipates a month-long temporary delay. Talks are underway between the company, both suppliers and the government for uninterrupted supplies. Earlier last month, the government has recommended the restructuring of HIP Petrohemija including the sale of three redundant facilities and a 20% cut in jobs.”DOW EUROPE GMBH ANNOUNCES PRICE INCREASE FOR PLASTICS ADDITIVESDow Europe GmbH announced that it will increase prices on all Plastics Additives product lines in Europe, Middle East, and Africa, effective July 1, 2009 or as contracts allow. These increases are necessitated by the continuous cost escalation of key raw materials and feedstocks and will vary by product line as follows: Paraloid™ Acrylic Impact Modifiers, Paraloid™ Processing Aids, Paraloid EXL™ Acrylic Tougheners, Paraloid™ MBS Impact Modifiers, and Paraloid EXL™ MBS Tougheners: 4-6% price increase. Advastab™ Reverse Ester Thermal Stabilizers and Advastab™ TGA-Based Thermal Stabilizers: 7-9% price increase. Advalube™/Advawax™ Lubricants and Advapak™ Multifunctional Additives: 4-6% price increase.
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