Delayed restart of SABICs Wilton LDPE plant props up Prices in Europe

05-Jul-14

European low density polyethylene spot prices were up Eur20/mt (US$27) week-on-week to Eur1,342.50/mt FD NWE Wednesday, underpinned by a delayed restart at SABIC's Wilton, England, LDPE plant, sources said in Platts. This is a five and a half month high, according to Platts data. Restart of the 400,000 mt/year plant along with the steam cracker due on June 22-24 was delayed for unspecified reasons. A spokeswoman at SABIC said last Friday that maintenance activities were ongoing at the Wilton cracker, without giving details. She said Thursday that she did not have and further comments "yet." The rise in LDPE prices was also supported by the increase in the feedstock ethylene July contract which settled Eur50/mt higher at Eur1,220/mt FD NWE, a high since January, as energy prices rallied on the Islamist insurgency in Iraq.Feedstock naphtha hit a 2014 high of $974.75/mt CIF NWE on June 20 but have since eased to be assessed at $956.50/mt CIF NWE Wednesday. There was resistance from converters to "swallow the price increase," by sellers who were targeting a Eur50/mt rise, leveraged by the delay at SABIC's plant, sources said. Converters contested the increases over the ethylene rise citing softening naphtha. One converter said that if the feedstock fell further it would dampen the current bullishness in the market.