European ethylene has firmed over the last week on a pick-up in demand from buyers, according to sources Monday.
"Our crackers and polyolefin plants have ramped up rates as demand has improved. We are operating at plus 80% on our plants," a net seller said.
A spate of imports booked also reflected an enhanced appetite of the buyers. One buyer reported purchasing a 12,000 mt cargo from the US for March arrival. Sources also reported that a Mexican cargo had loaded at the end of December for Romania.
"I bid $1,320/mt CIF NWE for the cargo and lost it," one source said.
Elsewhere, there was also an internal transfer by Dow chemical from Bahia Blanca in Argentina to Tarragona in Spain, the Fearnley Gas Market Report showed.
The 5,000 mt cargo is loading on January 13-15, the report said.
Additionally, a shipping report from oil and gas consultancy Gibson showed a 9,000 mt cargo had loaded from Ruwais in UAE to unload at Tarragona, Spain late December.
"We are checking the arbitrage from Asia to Europe," a trader said Monday.
Bid-offer ranges for CIF values were heard at $1,370-1,450/mt CIF NWE.
European prices were assessed at $1,400-1,405/mt CIF NWE Friday, up $20/mt from end-December. Ethylene was assessed at $1,280/mt CFR Northeast Asia, mostly stable since end-December.
In the inland market, offers spiked to Eur1,150/mt ($1,500/mt) FD NWE and above.
"We are offering just below Eur1,200/mt FD NWE," a seller said.
Production issues also drove offers higher, sources said.
Buyers said price ideas had moved to Eur1,100-1,150/mt FD NWE. Prices were assessed at Eur1,140-1,145/mt FD NWE, an increase of Eur85/mt week on week.
