Europe fixes a fifth ethylene cargo to Venezuela

Another ethylene cargo has been fixed to move from Europe to Venezuela, making it the fifth such fixture since September, sources said Monday.

The cargo is for loading on November 20, from the Mediterranean, sources added. The price of the cargo, however, couldn't immediately be confirmed.

Laggard demand from ethylene derivatives has resulted in excess supply in Europe, which is prompting producers to export. At the same time, European producers have cut back cracker rates to 70-80%.

The November ethylene contract price settled Thursday at Eur1,095/mt ($1,535/mt), down Eur20/mt on September. Softer naphtha costs also contributed to the fall in the CP.

Naphtha was assessed at $871.75/mt CIF NWE Friday, down $16.25/mt on the week. Naphtha cracks have been weak due to low demand from petrochemicals, and were heard at minus $10.45/b for November on Monday morning.

In the European ethylene inland spot market, sources reported that, while some offers slid to Eur850/mt FD NWE, some were persistently "high" at Eur950/mt FD NWE. Buying ideas, however were below Eur900/mt FD NWE. Prices were assessed marginally lower on the week at Eur900/mt FD NWE Friday.

In other coastal news, a Mediterranean integrated producer reported an offer from Iran at $1,130-1,150/mt CIF Med. In NWE, offers from Middle East were reported at $1,180-1,190/mt CIF NWE. Buyers however, were on the sidelines for coastal imports given the ease of availability inland.

CIF values tumbled by $50/mt on the week to $1,185/mt CIF NWE and $1,165/mt CIF Med Friday.