A spate of unplanned production outages in the NWE high density polyethylene triggered gains in spot prices, industry sources said this week.
Ineos declared force majeure on HDPE supplies out of Lavera, France due to a fire on Friday, industry sources reported. The capacity of the plant is 240,000 mt/year. Ineos declined to comment.
Two other producers, Total Petrochemicals and LyondellBasell, last week also declared force majuere on their HDPE plants in Antwerp, the Netherlands and Plock, Poland respectively. The capacities of the plants is 510,000 mt/year and 320,000 mt/year respectively.
Sources also reported limited supplies from Eastern Europe and North Africa due to production issues.
In the spot market, lack of product pushed prices up. "It is difficult to find any HDPE grade below Eur1,400/mt ($1,767/mt) FD NWE," a trader said.
European producer offers were higher, with one producer reporting an offer at Eur1,500/mt FCA NWE for HDPE blowmolding.
Egyptian offers for injection grade were heard at Eur1,550/mt FD NWE, and some European traders said they were still selling in the low Eur1,400s/mt FD NWE.
Uni modal film was heard offered at Eur1,380/mt FD NWE, while bi-modal film offers were at Eur1,400/mt FD NWE.
Blowmolding and injection grades were assessed at Eur1,420-1,425/mt FD NWE, up Eur20 on the week. Film grade was assessed at Eur,1390-1,395/mt FD NWE, up Eur30 on the week. Despite a wide-open arbitrage, imports from the Middle East and Asia into Europe are only due to be delivered in October, meaning only European quantities will be around in September, a source said.
