Information
| PP/PE/PS/PVC PRICES EUROPE June 22th,2009 |
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Written by bod010
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Tuesday, 04 August 2009 09:08
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Crude oil prices declined on Friday on indications that motor fuel supplies were likely to increase in the US due to gains in crude production by refineries. Crude oil prices turned bearish as a report by the US Energy Department on June 17 stated that there was a rise in gasoline inventories by 3.39 million barrels to 205 million the week before, the biggest rise since January. The total daily demand for fuel has declined by 6 percent as compared to a year ago. The Energy Department also informed that in the week ended June 12, 9.13 million barrels of gasoline per day were produced by US refineries, an increase of 2 percent from the week before. Refinery operations were pegged at 85.9 percent of production capacity last week, an increase from 80.4 percent of production capacity in the week ended April 10. There was a rise in gasoline imports by 25 percent to 1.09 million barrels per day last week, the highest rise since April. An International Energy Agency report dated June 11 stated that global demand for oil is slated to fall 2.9 percent this year to an average 83.3 million barrels per day. The report also said that oil consumption in the US, the world’s largest oil consumer, will decline by 4.9 percent to 18.55 million barrels per day. Nymex crude futures decreased to trade at USD 69.55/barrel while Dated Brent spot prices fell to trade at USD 68.30/barrel. WTI Cushing spot prices turned lower to trade at USD 69.55/barrel.Polyethylene
In the spot markets, HDPE injection moulding prices were assessed at the Euro 830/mt FD North West Europe levels while HDPE blow moulding prices were assessed at the Euro 840/mt FD North West Europe levels. Prices of HDPE were firm on the back of improved buying interest coupled with tight regional product availability. Maybe it’s good news for the sale of deer mesh fencing and pallet net wrap. Also supporting higher HDPE rates in Europe was robust export demand and a reduction in domestic production. Upstream prices of naphtha and ethylene feedstock were also pegged firm in Europe last week.SPOT LDPE PRICES IN EUROPE RECORD SHARP GAINSContract prices of general purpose LDPE in Europe last week were assessed unchanged from the week before at the Euro 900/mt FD Germany levels and Euro 890/mt FD Italy levels. Spot prices however raced higher, driven up in tandem with strength in July ethylene feedstock values on the one hand coupled with reports of tight availability of spot regional LDPE on the other. FD North West Europe spot prices of LDPE were assessed last week at the Euro 880/mt levels, up from assessed levels of Euro 830/mt the week before. There have been prompt deals in LDPE concluded at the Euro 900/mt FD North West Europe mark. Local demand has improved while interest from Asia for European product is also quite robust. Also bullish for LDPE are the unscheduled production problems which have plagued select LDPE makers in Europe in recent weeks. This has actual users in the region concerned and hence the buying mood going forward is expected to remain upbeat for European LDPE. In view of this, the sale for LDPE products like pea & bean net and anti bird netting is optimistic. Prices are pegged firm in the US and Asian markets too.SPOT LLDPE PRICES IN EUROPE RECORD GAINS LAST WEEKAlthough LLDPE contract prices in Europe were assessed unchanged last week at the Euro 870/mt FD North West Europe levels, prices in the spot markets were seen galloping higher. FD North West Europe spot prices on Friday last week were assessed up at the Euro 860/mt mark, a gain of Euro 30/mt from the week before. Prices in the spot markets gained as regional availability of LLDPE was tight and buying was robust as most players anticipated prices in July would climb. Therefore actual users and traders alike were in a rush to build on their inventories ahead of a further price gain. Supporting the bullish pricing undertone in LLDPE were low inventories with actual users which needed to be replenished. Most players in Europe had anticipated an influx of Middle East product in July which would mark the European markets as long in LLDPE. However there have been delays in production and shipments and PetroRabigh will deliver its first LLDPE cargo to China only in August.Polypropylene
Upstream naphtha prices are soaring while propylene feedstock prices are also on the rise. With demand for PP active in Europe, sellers expect the pricing trend to remain bullish through June and well into July. The fact that prices are on the rise in Asia and the US are also helping support gains in PP prices in Europe. So prices of PP products—window screen and plastic net bags are certainly higher. In the spot markets PP prices were assessed at the Euro 750/mt FD North West Europe mark while PP copolymer prices last week were assessed at the Euro 800/mt FD North West Europe levels. Demand for European PP in the markets of Turkey and Russia were also said to be good, however avails were limited.Polystyrene
In the spot markets, GPPS prices were assessed flat at the Euro 900/mt FD North West Europe levels while HIPS prices were assessed at the Euro 945/mt FD North West Europe mark. Producers continued to remain determined to push through a price hike owing to high production costs. However buyer apathy made their task difficult. Producers are hearing of all kinds of increases for June contract price settlements with some PS producers claiming gains of plus Euro 20/mt while others claim to have achieved hikes of between Euro 40/mt to Euro 50/mt from their May settlements.Poly Vinyl Chloride
Prices of PVC in Europe’s spot markets meanwhile recorded steep gains last week. Prices were assessed up at the Euro 620/mt FD North West Europe levels, a sharp climb from the Euro 580/mt FD North West Europe levels recorded a week earlier. In Turkey, PVC prices were pegged firm. Spot prices gained with European prices heard up at the USD 950/mt CFR Turkey mark. European PVC producer Solvin meanwhile continued to pursue its nominated increase of Euro 100/mt for the month of June.Acrylonitrile Butadiene Styrene
While general purpose and natural grade contract prices of ABS were assessed up in Europe last week at the Euro 1240/mt FD North West Europe levels, prices of ABS in the spot markets were assessed up a the Euro 1115/mt FD North West Europe mark. Avwe color grade increased by Euro 20/mt to close at Euro 1565/mt. At the start of June producers had nominated hikes of Euro 80/mt in our contract prices for ABS as compared to May settlements. Although they haven’t achieved our total targeted increases yet, they have been quite successful with hikes of Euro 40/mt thus far. With butadiene feedstock prices bullish and with June contract price settlements for SM up nearly Euro 50/mt, they are confident of succeeding in achieving the targeted hike for the month.Polyethylene Terephthalate
In the contract markets, bids for OX were up at the USD 800/mt levels, a gain of USD 45/mt from the week before. Spot prices of OX were assessed at the USD 810/mt FOB Rotterdam levels. Buyers attempting to bid at below the USD 800/mt FOB levels for spot OX cargoes, were ignored. The tightness in OX availability in Europe is very real. Currently demand is outstripping supply in the region and therefore prices will continue to journey north.DOW EUROPE ANNOUNCES PRICE INCREASE FOR POLYOLS AND ISOCYANATES IN EUROPE, THE MIDDLE EAST, AFRICAEffective July 1, 2009, or as contract terms allow, Dow Polyurethanes, a business group within The Dow Chemical Company and its affiliates including Dow Europe GmbH, will increase prices for its Polyurethane raw materials. In Europe, prices for both polyols and methylene diphenyl diisocyanate (MDI) will increase by a minimum of 100 EUR/MT, whereas in the Middle East, Africa and the Indian Subcontinent prices for polyol and MDI will rise by a minimum of 150 USD/MT. This price increase is in addition to the previously announced increase in May. “The escalating feedstock and energy cost is the primary driver for this increase,” says Sudhir Shenoy, Product Manager for Europe, Middle East, Africa and India. “We must raise our prices in order to maintain margins and reinvest in the future growth of our business,” he further adds.PRODUCTION RESTARTED AT SWISS OIL REFINERY BY TAMOILProduction has been restarted at the Collombey refinery of Tamoil SA, the overseas oil refiner of Libya. The source said, ”located in Switzerland, the Collombey refinery has a production capacity of 50,000 barrels per day. The refinery restarted operations following a two day shutdown early last week. The refinery may have been taken offstream as a retaliation to a raid by the Swiss police citing reasons that the plant was operating in violation of water, environment and air protection laws.”
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