European Ethylene: Low demand despite higher February
contract prices- CP settles for Eur1,260/mt. This is up Eur85/mt from
month- Weak derivative demand market drives fundamentalsDue to the rise in February's monthly
contract price, the European ethylene market saw little demand and very limited
market activity during the week ending February 3. The European ethylene
industry-settled contract cost was Eur1,260/mt. This is an increase of Eur85/mt
over January levels. The January price
increases in naphtha prices, which are a key feedstock for ethylene production,
led to an increase in the monthly contract pricing. Average naphtha prices for January were $690.70/mt CIF NW
Jan. 30, an increase of $98.70/mt over December. . According to market
participants, European ethylene production is still low. Stream crackers are
operating at reduced rates of 70%. The
tentative rebalancing that was seen in...