European ethylene CP for March settles up Eur50/mt amid Middle East tensions

The European ethylene contract price for March was settled at Eur1,145/mt March 2, a Eur50/mt increase from February, according to market sources.

Four sellers and two buyers confirmed the settlement. Platts, part of S&P Global Energy, considers the contract price fully settled when two independent buyers and two independent sellers confirm the same level.

The settlement was delayed slightly, with the market expecting an agreement by Feb. 27, the same day the European propylene contract price was settled.

Discussions had been extended to March 2 amid differences in buyer and seller positions. However, discussions had also taken a while, settling late on March 2 amid a sharp rise in the feedstock naphtha price following tensions in the Middle East stemming from the US-Israeli conflict with Iran.

The average feedstock naphtha price in February stood at $563.93/mt CIF NWE, up $41.20/mt from the January average, according to S&P Global Energy data. Participants had anticipated a similar increase to the propylene MCP of Eur35/mt, but the sharp rise in naphtha prices -- up by $52.50/mt on March 2 from the end of February -- supported a stronger hike in the ethylene CP for March.

February spot trading activity in the European ethylene market was slightly firmer than in January, amid some supply constraints that supported higher prices. Comparatively, the March spot trading window saw higher prices discussed for spot volumes with expectations of a tighter supply window.

The European cracker maintenance season is scheduled to resume in mid-March, with Sabic Geleen first on the list of planned turnarounds.

Platts assessed the European ethylene spot price at Eur782.50/mt FD NWE Feb. 27, up Eur109/mt from the start of February.