HC plastic mesh News: As the ethylene market has emerged in Europe turn, manufacturers pay close attention to a cracker of production to ensure supply does not exceed demand.
Have integrated producer, said: “I did feel a little more of ethylene, especially in April of vinyl, I think everyone has such similar views.”
It also said: “The challenge of ethylene appeared.”
Heard, since February the market has peaked since the middle of that time, Christmas and New Year cracker unplanned parking problems solved.
But on behalf of Shell in Helanmuer gram cracker out of the accidents, this unit has 900 thousand tons / year ethylene production capacity, is Europe’s second-largest ethylene plant; Germany Wesseling’s 2A cracker has made a accidental problems, coupled with refinery strike in France, Total two sets of cracker, which have reduced the surplus on the market fears, but the impact is short.
Production problems are now resolved, cracking device in normal operation. Good profit margins, demand Wang, pyrolysis products of propylene and butylene tight supply, some at full load.
There is a net consumer business, said: “In normal production, cracker high profits, the market supply of good.”
Have manufacturers that: “If the cracker loading rate higher than the demand for ethylene, and the demand for improved compared to previous months has not yet absorbed the production capacity in Europe.”
Industry that no one forced to reduce production, but the manufacturer needs close attention to the developments, is still the first half of waiting for customers ordering manufacturers.
The integrated producer, said: “We may be in the market at the same time, it will be the beginning of downward spiral.”
Industry that very few cash transactions in recent weeks have not publicly reported transactions.
As production problems, the United States with high ethylene prices, which opened up the Pacific coast of the arbitrage window things, leading traders to explore the European ethylene export to the region.
Traders said, which helps to balance the supply of Europe.
But many people have doubts that this is not feasible. Insiders said the arbitrage window is very narrow, because the U.S. stock market premium, cargo must be shot quickly, to solve the logistics problem. Because only a private pier, plus a small storage capacity, the U.S. imports very little.
Weekend for March 5 of that week, the U.S. ethylene contract price of 70 cents / pound (1,543 U.S. dollars / ton, 1,126 / ton, delivered), but the asking price has since dropped to 65 U.S. cents / lb ( delivery), in April of goods, asking price is 62 cents / lb.
Given the current prices of goods in April of 60 cents / lb (delivery), north-western Europe to the United States Gulf of freight for the 200-220 U.S. dollars / ton. Europe’s net profit is very low.
Traders have said that net should be 850 U.S. dollars / ton (620 euros / ton, FOB Northwest Europe) to the production afloat.
Prices in Europe’s position on more than 800 U.S. dollars / ton (pipe delivery), but strong naphtha prices to producers to increase the pressure to raise stock prices. It was reported that 860 U.S. dollars price the seller wants / ton (delivered), 3 month contract price set at 940 / t (Northwest Europe delivery), continue to use the February price.
Have integrated producer, said: “If the past had the arbitrage window, is no.” SABUNG AYAM