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(ICIS) -- Spot ethylene and propylene
prices have fallen significantly over the past two months on poor demand from
key derivatives polyethylene (PE) and polypropylene (PP) that has been weighing
on supply, and there is further downside potential, market sources said on
Friday.
Ethylene spot pipeline prices have dropped by around 33% since early May,
when prices peaked at around EUR 1.230/tonne (USD 1.783/tonne). Prices this week
are recorded below EUR 850/tonne FD (free delivered) NWE (northwest Europe).
Polymer grade propylene prices on the inland market have fallen by almost
18%. Prices peaked at EUR 1.265/tonne FD NWE at the end of April, but are now in
the mid-to-high EUR 1.000s/tonne FD NWE.
Lengthening supplies due to a general reluctance to cut cracker operating
rates too significantly because of healthy margins has meant that local
suppliers have been forced to cut spot offers. Sellers said that they have been
discounting heavily from contract prices, which recently settled at reductions
of EUR 95/tonne and EUR 75/tonne for ethylene and propylene
respectively.
mrcplast.com | 
