European players: Initial March ethylene contracts not to be followed
by ChemOrbis Editorial Team - content@chemorbis.com
The initial settlement of March ethylene contracts with €15/ton hikes as of last Thursday has caused confusion among European players as it fell short of expectations given the fact that spot ethylene prices have surged noticeably throughout February. Players are now arguing that the initial contract level at €1035/ton (1093$/ton) FD NWE will not be followed.
This is attributed to the upsurge in spot ethylene prices, which were up €100-115/ton on the week. When compared to early February, spot ethylene prices have posted a gain of €190/ton on average, according to ChemOrbis Price Wizard.
Accordingly, players expect ethylene contracts to be fully settled with €40-50/ton increases this week.”Given the upcoming maintenance season at crackers as well as the spot tightness, ethylene producers are likely to push for larger increases,” said a trader in Italy.
This is attributed to the upsurge in spot ethylene prices, which were up €100-115/ton on the week. When compared to early February, spot ethylene prices have posted a gain of €190/ton on average, according to ChemOrbis Price Wizard.
Accordingly, players expect ethylene contracts to be fully settled with €40-50/ton increases this week.”Given the upcoming maintenance season at crackers as well as the spot tightness, ethylene producers are likely to push for larger increases,” said a trader in Italy.
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