European low density polyethylene fell by Eur5 (US$6.70) week on week to Eur1335/mt FD NEW, as Sabic lifted force majeure on LDPE supplies from its 400,000 mt/year plant in Wilton, northeast England, during a seasonal lull and a fall in feedstock prices, sources said in Platts.
LDPE prices have been steadily falling since July 10, when they were assessed at Eur1392.50/mt FD NWE, a nine-month high, due to higher availability, bearish feedstocks and low seasonal demand.
Sabic sent the letter informing customers that the force majeure had been lifted on Monday, a converter said. Sabic was not immediately available to confirm. Force majeure on certain LDPE grades was declared in early July as the plant had issues restarting from a planned turnaround.
Feedstock naphtha fell to US$864/mt CIF NWE Tuesday, the lowest in five trading sessions. Front-month Brent crude futures were trading at US$102.93/barrel Wednesday morning, their lowest in four months. Spot offers are around Eur1340/mt FD NWE but no one is buying at that level, as there is too much material on the market and not enough demand.