Polyolefins in Europe likely to come under pressure in H2 2015

14-Aug-15

European polyolefins prices may come under pressure in H2-2015, as supplies rise on restarts of new crackers and polymers plants, as per Borealis CEO Mark Garrett to Platts Some of the major European crackers including Shell's 900,000 tpa Moerdijk cracker in the Netherlands, Total/Ineos' joint-venture 740,000 tpa Naphtachimie cracker in Lavera, France and Dow's 565,000 tpa Bohlen cracker in Germany have yet to run at full run rates following their recent restarts after their respective maintenance European polyolefin supplies will "normalize" as these crackers begin production at full steam, Garret said. "In the second quarter of 2015, integrated polyolefin producers saw strong industry margins. Despite lower feedstock costs, polyolefin prices did not retreat driven by a tight market as a result of solid demand combined with a supply shortfall. In addition, imports of polyolefins into Europe have been uncompetitive following the weakening of the euro," the company said Second quarter 2015 saw a sharp rise in polyolefin prices, with both low density polyethylene and homopolymer polypropylene reaching record highs, Platts data showed