European Ethylene Spot Prices Drop in Tight Market
Dynamics-  Prices
for buyer and seller differ-  Crackers
operating at reduced ratesThe European ethylene market was tightening
in supply, but demand remained low. Market activity was limited by delays in
contract price settlement. Sources
confirmed that the European November ethylene contract price was settled at
Eur35/mt for a month at Eur1,295/mt Nov.4. A producer confirmed that the settlement was delayed by
negotiation problems. It was expected to be completed on November 1. A gap between buyer and seller expectations caused the delay
in the contract pricing agreement. Due to
low demand and a disconnect in spot and contractual pricing in October and
producers pushing for higher prices because of rising costs for key feedstock
naphtha, consumers were reluctant to accept increased pricing. Market participants saw the settlement...