An ethylene cargo has been fixed to move from Europe to Venezuela. This is the fourth cargo from Europe since September, as per Platts. The price of the cargo is below Eur 900/mt (US$1232/mt) FOB Med. No confirmation is available on size of the shipment and the seller.
Slowing domestic demand amid ample supply has pushed European producers to encourage exports. Demand has outpaced supply in Europe, converting it from a traditional net importer of ethylene to a net exporter late in Q3-2011. To cope with an oversupply, European producers have also cut back cracker rates to 70-80% as a means of controlling inventories.
Maintenance work at the Houston terminal, which generally serves the Venezuelan ethylene market, has helped create an export opportunity for European producers.