European PE, PP buyers expect prices to fall month-over-month in October following price slump at end of September because of falling pressure on naphtha prices, easing tensions in Middle East
, October 16, 2013 (ICIS Chemical Business (CBNB Abstracts)) – Sep 2013 monomer contracts were offered at prices that were higher by EUR 50-60/tonne due to naphtha high prices. However, the end of the month became a disappointment to sellers when polyethylene (PE) and polypropylene (PP) prices slumped because the pressure on naphtha prices was lifted and tensions in the Middle East eased. After monomer contracts were agreed to decrease by EUR 35-40/tonne, European PE and PP players expect lower prices in Oct 2013. Propylene contract declined by EUR 40/tonne, settling at EUR 1110/tonne on a free delivered (FD) northwest Europe (NWE) basis, while ethylene contract fell by EUR 35/tonne to EUR 1225/tonne, also on an FD NWE basis. From $965-967/tonne CIF NWE on 6 Sep 2013, naphtha declined and was trading at $890-892/tonne CIF NEW on 30 Sep 2013. Low density PE (LDPE) prices were at around EUR 1340/tonne FD new, decreasing from EUR 1400/tonne FD NWE. From the mid-EUR 1300/tonne FD NWE in early Sep 2013, PP copolymer prices slid to below EUR 1300/tonne FD NWE. A graph shows PE prices (EUR/tonne) from Sep 2012 to Sep 2013. Original Source: ICIS Chemical Business, http://www.icis.com/, Copyright Reed Business Information Limited 2013.