News Code : 44822

Europe PE margins rise on higher selling prices

Europe PE margins rise on higher selling prices

Petrotahlil -Europe's polyethylene (PE) producers' margins increased week on week on the back of higher selling prices, although this was in part offset by a rise in feedstock costs, ICIS margin analysis showed on Monday.

In the week to 10 July:

- Naphtha values rose by more than 6%

- LPG values increased by 2%

High density polyethylene (HDPE) contract margins rose by 2%, co-product credits increased:

LPG-based HDPE contract margins went up by 7%.

Low density polyethylene (LDPE) contract margins were up by 3%, co-product credits soared:

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LPG-based LDPE contract margins rose by 7%.

HDPE spot margins by feedstock:
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LDPE spot margins by feedstock:

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In the week to 10 July, supply remained adequate while demand showed signs of decline into the traditionally quiet summer months.

Prices rose on bullish feedstock pricing.

For naphtha-based integrated processes, increases in feedstock value prevented extensive spot margin growth, but PE price rises in the spot market did support small increases in margin value.

LPG-integrated processes showed higher margin gains as feedstock rises were significantly less.

Falls in spot ethylene pricing and increases in PE prices promoted an increase in standalone margins.

Of the three main grades modelled, LDPE showed the strongest margin development.

Source : ICIS

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