As the European ethylene supply continued to outpace demand, producers were prompted to explore export options, sources said.
Shipping reports showed two cargoes fixed from Europe to Venezuela. A 4.5kt cargo for 20-25 September loading was fixed from Italy and a 5kt cargo end September loading was fixed from ARA.
Sources pegged FOB prices at Eur900-930/mt, but this could not be confirmed with the sellers of the cargoes. For inland prices, sell ideas we heard at Eur950/mt FD NWE, whereas buy ideas were heard at Eur930/mt. Ideas were notional, however, as there was "no demand" for spot volumes by European buyers. Prices were assessed at Eur930/mt FD NWE Monday, losing Eur30/mt on the week.
Due to ample availability with European producers, import options were not on the horizon for European buyers. Coastal values slumped by $65/mt and $75/mt week-on-week to $1,230/mt CIF Med and $1,250/mt CIF NWE respectively. The dive in prices was accentuated by a rising dollar. Asian prices fell $26/mt day on day to be assessed at $1,074/mt CFR Northeast Asia Monday.
Direction of the October contract price was unclear due to conflicting fundamentals. Contract crackers margins were assessed at Eur10/mt Friday, up Eur2/mt on the week, with spot contract margins still in red.
Though naphtha dropped below the $900/mt CIF NWE mark Thursday, assessed Friday at $899.25/mt, average naphtha cost in September at Eur688/mt ($951/mt) is higher compared to August by Eur32/mt ($11/mt).
Proponents of an increase in the contract price argued for its necessity to offset energy price volatility and declining co-product credits of the steam cracker. An initial Northwest European butadiene contract price for October settled at Eur2,100/mt FD NWE last week, which represents a fall of Eur300/mt compared to the September NWE CP.
Proponents of a decrease saw that lower prices were essential in order to improve chain affordability and restrict downstream demand destruction.
Negotiations for the CP settlement are to begin Tuesday, sources said Monday.
