Fourth ethylene cargo since September, reportedly priced below €900/tonne, shipped to Venezuela from Europe as region turns to exporting on strong supply, slowing domestic demand
October 19, 2011
– An ethylene cargo priced at below €900 per tonne (US$1,232/tonne) free on board Mediterranean was the fourth since September to be shipped to Venezuela from Europe, sources say, Platts reported Oct. 18.
Sources did not confirm either the size or the seller of the shipment.
Demand in Europe has significantly slowed, prompting the region’s ethylene producers to begin exporting abundant supplies at the end of the third quarter, according to Platts. Also, scheduled maintenance at a Houston terminal that typically serves the Venezuelan ethylene market provided a window of opportunity for European producers.
Europe has historically been a net importer of ethylene, Platts noted, but as of the latter part of Q3, the region has become a net exporter.
Despite increasing energy prices, Europe’s ethylene pipeline prices remained stable for the week at €925/tonne free delivered northwest Europe on Oct. 17.
The primary source of this article is Platts, New York, on Oct. 18, 2011.