In Freight News 22/05/2015
Five US propylene shipments totalling 20,000 mt-25,000 mt have been heard fixed for Europe arriving end-May to early-July, sources have said.
Tightened supply brought by production issues have lifted prices in Europe opening an arbitrage opportunity between the two continents, the sources said.
Propylene spot prices in Europe were assessed at $1,151.66/mt FD NWE, Thursday. Prices in the US were assessed at $628.14/mt FD USG on Wednesday. Trade and shipping sources pegged freight at $210-$220/mt.
Arrival of these imports is not expected to make a substantial difference on prices, sources said.
“May has lost more than 25,000 mt of production,” one trade source said. “The incoming deliveries will only help re-establish inventories.”
Up to 12% of European olefin production is reported to be shut in, sources said.
Repsol has declared force majeure on ethylene supplies from its Tarragona steam cracker, the company said.
Naphthachime has halted olefins production from its steam cracker in Lavera, France, following a fire at the site Sunday.
Shell declared force majeure at its Wesseling cracker in Germany following a fire at the site May 13, market sources said.
Force majeure continues at Shell’s Moerdijk site in the Netherlands.
