Ethylene, propylene plunge- European polyolefin contract prices dive to multi-year lows

09-Jan-15

January contract prices for European polyolefins (polyethylene, polypropylene, polyvinyl chloride) have sunk to multi-year lows following the fall in the January CPs of olefins -- ethylene and propylene, as per Platts. Low density polyethylene CP was assessed at Eur 1207.50/mt (about US$1420/mt) on Wednesday, down Eur 115/mt since the last assessment on December 17- a near 5 year low. PP contract price fell to Eur 1187.50/mt FD NWE, down Eur 110/mt since December 17- a low of nearly two and a half years. PVC contract prices were assessed at Eur 715/mt FD NWE, down Eur 55/mt since December 17, a near 5-1/2 year low. The ethylene and propylene CPs were fully settled on December 23 at Eur 880/mt FD NWE and Eur 835/mt FD NWE, down Eur 130/mt and Eur 120/mt on the month respectively, a low not seen since January 2010. A further downtrend is expected in contract prices of polyolefins and olefins as naphtha touched a fresh near 6 year low of US$377.50/mt CIF NWE Wednesday. North Sea sweet crude benchmark Dated Brent has fallen to US$49.07/barrel, its lowest level in five and a half years.