As a result of the Russia-Ukraine crisis and high energy costs,regional PC productions margins have plummeted,which has led to expectations of rate cuts and thus a shortage of supply.A coordinated aim to avoid Russian refined-products will leave Europe short of naphtha feedstock as 44% of the region's naphtha imports and 20% of regional supply came from Russia.Commodities news publisher ICIS reports that the loss of Russian supply could leave Europe with a naphtha deficit of 700K-1MM mt this year.While European PC producers could seek naphtha cargoes from elsewhere,they would have to pay a hefty premium.The impact of these bullish events on the European PC sector can already be seen in the polyolefins sector with European April contract prices for polyethylene(PE)and polypropylene(PP)soaring on the month.According to ICIS,low-density,linear low-density,and high-density PE prices rose by nearly €230($249)/mt from March to April.In addition,contract prices for every grade of PP reportedly rose by €170($184)/mt over the period.
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