Western European production volumes for ethylene, propylene and butadiene in the second quarter fell on the year as operating rates fell after a build-up of inventories, data released Tuesday by the Association of Petrochemical Producers in Europe showed.
Ethylene, propylene and butadiene production in the quarter stood at 4.682 million mt, 3.603 million mt and 521,000 mt, respectively. This represents year-on-year falls of 6.15%, 2.5% and 1.9%.
Compared with the first quarter, production volumes were down by 4.05%, 1.9% and 3.7%, respectively.
"Cracker operating rates peaked at 92% March. Then due an an inventory build-up they were reduced to 85% by June," Pierre de Kettenis, executive director of CEFIC Petrochemistry Programme told Platts.
Destocking in the olefin industry in the second quarter was also reflected in prices. Ethylene contract prices fell for three consecutive months between May and July. The April contract price was settled at Eur1,345/mt ($1,678/mt) FD NWE, but by July prices were down to Eur1,035/mt FD NWE.
However, in August the olefin industry has been seeing stock replenishment as the energy complex moves higher. The August contract price for ethylene jumped Eur140/mt on the month to Eur1,175/mt FD NWE.
