European PE market braces for further drops in July
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)
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Turkey’s PP, PE markets open 2021 with supply-driven hikes
- Vietnam’s local homo-PP market retreats for 3rd week on subdued demand
- China’s PE demand wavers amid controls on environmental pollution and electricity use
- January trend takes shape in Egypt’s PP, PE markets
- Stats: Turkey’s 2020 polymer imports set to beat the 2017 record
- China PP, PE markets close 2020 on a soft note; SE Asia feels pressure
- Stats: China’s total PE imports down for 2nd month in November
- Egypt PET markets poised to end the year on a strong note
- China ABS prices move below SEA after 8 months
- Sentiment in Turkey’s PP, PE markets defies faltering in China