European PE cut production stagnant market - Arhive

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European PE sellers plan to cut production due to stagnant market

European PE cut production stagnant market

MOSCOW – The margin of polyethylene (PE) production in Europe is low at the moment, and some manufacturers are considering the option of reducing production, ICIS told several sources of the market.European PE cut production stagnant market

Demand remains sluggish in the European market, and spot prices for material in many cases have fallen below basic ethylene contract prices.European PE cut production stagnant market

The margin of the cracking units is still positive, but the difference between the quotes of ethylene and PE is small.European PE cut production stagnant market

One of the manufacturers said that the current situation is reminiscent of 2011-2012, when several PE plants in Europe were finally closed.

At the present time, the margin of the cracking units is still higher than at that time, but the difference between the prices of ethylene and PE is still very low.

According to the ICI-MRC price review , in Russia the demand for PE in the first two weeks of October is not high.

Many processors are sure that PE prices are at their peak due to production shutdowns and they expect prices to decline after the end of the preventive period, and, as a result, carry out purchases exclusively from current needs.

mrcplast.ru

Author:                Margarita Volkova