NWE ethylene spot prices rose Eur15/mt on the week Thursday to Eur1,020-1,025/mt ($1,314-1,320) FD NWE, driven by better-than-expected offtake from primary derivative polyethylene in July.
On Friday, a buyer and seller confirmed a 2,000 mt deal on ARG pipeline for prompt delivery at Eur1,035/mt FD NWE. "The offtake has been better than expected from derivatives like PE and ethylene oxide," the buyer said.
"We are running at utilization rates of 87% due to strong demand," the seller said. "PE demand is expected to be very firm till the end of July and then August is a bit of a question mark."
Sources also said Friday that net seller Versalis had sold a 3,000 mt cargo to Ineos in Lavera, France, from Porto Marghera, Italy. The cargo is set to load July 14-16. Versalis and Ineos were not immediately available to confirm the price and other details.
Downstream, European linear low density PE and LDPE spot prices strengthened further this week, after losing some gains last week. PE sellers increased offers in a market where supplies are tight, which led to a recovery in prices, sources said. Also the seasonality for certain applications gave demand a push, sources added. "We are seeing increased offtake on agriculture and beverage finally," one PE producer said.
"Silage wrap converters have increased demand," another producer said.
Despite some uptick due to seasonality and tight supplies, converters said medium- to long-term visibility on demand remained poor and it was difficult to be optimistic about underlying demand.
The ethylene spot price rise was supported by feedstock naphtha's march forward. Naphtha was assessed at $855.25/mt CIF NWE Thursday, compared with $831/mt CIF NWE a week earlier.
