European ethylene hit a 2014 high of Eur1,015/mt ($1375/mt) FD NWE Friday, up Eur45/mt on the week, Platts data showed, on the back of reduced availability and an increase in feedstock prices.
Naphtha hit a 2014 high of $959/mt CIF NWE Friday, as the energy complex rallied on geopolitical concerns.
Dated Brent surged to a six-month high of $112.845/b Friday, driven by its futures component in response to the worsening security situation in Iraq, one of the world’s leading oil producers.
Ethylene prices have been rising steadily since a fire last week at Shell’s Moerdijk site in the Netherlands curtailed available tonnes.
Shell operates a 900,000 mt/year steam cracker at the site, which was heard to be running at reduced rates following the fire, market sources said Friday, while Shell would not comment.
The restart of Ineos’s ethylene oxide plant was expected to further tighten ethylene supply, sources said. Ineos’s 450,000 mt/year capacity Antwerp plant was set to fully start over the weekend, sources said Friday.
The plant began maintenance at the end of April. Ineos was not available to comment. EO is a derivative of ethylene.