West Europe production volumes for ethylene, propylene and butadiene fall in Q2 yoy

22-Aug-12

Western Europe’s production volumes for ethylene, propylene and butadiene in Q2 fell on the year as operating rates fell after a build-up of inventories, data released by the Association of Petrochemical Producers in Europe showed, as reported by Platts Q2 production of ethylene, propylene and butadiene stood at 4.682 mln mt, 3.603 mln mt and 521,000 mt, respectively. This represents year-on-year falls of 6.15%, 2.5% and 1.9%. Vis a vis Q1, production volumes were down by 4.05%, 1.9% and 3.7%, respectively. "Cracker operating rates peaked at 92% March. Then due an an inventory build-up they were reduced to 85% by June," Pierre de Kettenis, executive director of CEFIC Petrochemistry Programme told Platts. Destocking in the olefin industry in the second quarter was also reflected in prices. Ethylene contract prices fell for three consecutive months between May and July. The April contract price was settled at Eur 1345/mt (US$1678/mt) FD NWE, but by July prices were down to Eur 1035/mt FD NWE. However, in August the olefin industry has been seeing stock replenishment as the energy complex moves higher. The August contract price for ethylene jumped Eur 140/mt on the month to Eur 1175/mt FD NWE.