Spot values for polyethylene grades in Northwest Europe remained firm this week despite easing naphtha levels, as supply was tight for prompt volumes of many grades, sources said.
In the feedstock market, demand for naphtha going east has been weak following last week's disaster in Japan, while the European market has been showing a balanced long view.
European naphtha closed Wednesday at $925/mt CIF NWE, touching a monthly low Tuesday of $919.25/mt. Japan's refineries and petrochemical crackers have still not returned to normal operational levels, sources said.
"I have heard that 50% of cracking capacity is down, which is up from the 35% previously heard," said one trader.
European low density polyethylene spot prices remained stable at Eur1,500-1,505/mt FD NWE this week.
Supplies were tight with small import volumes available, sources said. Marginal volumes were heard from Turkey at Eur1,440-1,450/mt FD NWE. European producers were heard offering spot at Eur1,520/mt, while distributors were higher at Eur1,550/mt FD NWE. Despite the wide range, spot values consolidated at Eur1,500-1,505/mt FD NWE Wednesday.
European linear low density polyethylene remained at Eur1,305-1,310/mt this week, even though sources noted a "sudden tightness" for prompt volumes.
Two converters reported difficulty in securing prompt volumes. The firmer prompt fundamentals were predominantly due to healthy demand and fewer imports, sources said.
European high density polyethylene spot values for injection, blowmolding and uni-modal film stayed strong this week too, closing Wednesday at Eur1,340-1,345/mt, Eur1,310-1,315/mt and Eur1,300-1,305/mt FD NWE, respectively, as supply issues continue to plague local producers.
Ineos' HDPE plant at Lillo in Belgium will undergo two weeks of planned maintenance beginning March 18-19, a company source said Monday.
"The force majeure at the HDPE lines still remains," the source said, adding that it was expected to remain in place until "early to mid April."
Force majeure was declared at the Lillo plant in February because of a technical issue. The plant operates two HDPE lines, with a combined capacity of 440,000 mt/year.
Force majeure at Ineos' 240,000 mt/year HDPE plant in Lavera in France was declared in January because of technical problems, and it remains in place, the source said.
"Plant operations between now and April will determine until when the force majeure is in place as we have a very long product wheel in Lavera," the source said. "The plant restarted late January, but faced problems in February."
Maintenance is also planned at Dow's 130,000 mt/year Tessenderlo plant in Belgium from mid-March for two to three weeks.
Other producers, were also heard to be short of volumes due to production issues in Poland, France and Spain, although these could not be confirmed.
Injection and bi-modal film grades were heard to be the most affected by the production issues, sources said.
