Sentiments of Europe Polyolefins to Fall Sharply
The sentiments of the European polyolefins market has fallen sharply. This is particularly true of future profitability and future business condition expectations, which saw the sharpest fall in confidence compared with June. This bearish indication of profits for the current and future are despite improving polyethylene (PE) and polypropylene (PP) margins in the week ending 22 July. There was a 4.0% decline in costs of naphtha feedstock which helped increase Europe PE producer margins during the week ended 22 July. Costs of naphtha declined to the lowest level since 15 April and boosted integrated contract margins by 4.9% for low-density PE (LDPE) and by 5.3% for high-density PE (HDPE). There was a slight gain in values of co-products. The integrated contract margins for LDPE and HDPE are at their strongest since 6 May.