Skip to content

Filter Options
Text :
Search Criteria :
Territory/Country :
Product Group/Product :
News Type :
My Favorites:

European PE market braces for further drops in July

by Manolya Tufan -
  • 01/07/2019 (04:30)
In Europe, June spot PE deals were closed with decreases of up to €50/ton despite the stable outcome of ethylene contracts. Late June discounts have failed to entice PE buying appetite as July expectations for further decreases pushed buyers to hold onto their waiting stance.

The monthly ethylene contracts that settled down €75/ton late Friday also confirmed these expectations.

Spot ethylene plunges by more than 8.5% since early June

According to the weekly average data on ChemOrbis Price Wizard, spot ethylene prices on an FD NWE basis plunged by around €90/ton since the downturn started as of early June.

Although players argued that the recent naphtha gains might cushion the extent of the expected decreases on ethylene contracts, spot ethylene declines were largely reflected on the monthly monomer settlement.

Spot naphtha prices and Brent crude futures have recently hit 5-week high on average, according to ChemOrbis Price Wizard.

Concerns over supplies outstrip demand in PE market

PE demand has remained below expectations so far. Moreover, the approaching summer season is not expected to spur demand as many converters are likely to see a slowdown in their end-product business. They are also postponing their purchases to next month, when they expect fresh drops. Supplies are reported to be more than comfortable, meanwhile.

US PE emerges at competitive levels in Italy

PE offers from the US are also offering competitive edge, adding extra pressure on the local spot market, where supply is already comfortable and demand is stagnant.

In the nearby Turkey market, US PE offers also formed the low end of the overall import ranges.

Global capacity additions, economic concerns weigh on market

The upcoming capacity additions across the globe triggered oversupply concerns across the board. Many players are also pointing to the economic slowdown amid uncertainties over US-China trade war and geopolitical tensions.

To track the most updated PE production news, please see PE Production News (For members only)
Free Trial
Member Login