latest update: 13 August 2009

PE:

The August ethylene contract was fully confirmed at 795 €/T (+10 € from July).

Ethylene spot also increased with 120$/T on one month time. Cheaper US C2 cargoes find their way to Europe.

PE inventories are remaining low in the whole value chain and limited spot offers were seen in the market.

After the price increase of 100 €/MT in July a further price increase of min 30/T is expected.

Those increases are fundamentally based on reduction of output rather than on strong demand as European markets are still weak.

Export possibilities are very limited now. .

PP:

August propylene contract has been established at 685€/T, up with 35€/T from July.

Spot C3 is told to be at the same level as contract and the market is still seen as tight.

PP stock levels are very low at producers and demand is steady.

Producers are pushing for a 60 to 90€/T increase but 40€ is more realistic.

The strength of the export market decreased due to cheaper offers from Reliance and Petro Rabigh.