Home > Chemical News

Chemical News

Mexico's PMV offers ethylene cargo on tender: source

https://www.chemnet.com   Sep 02,2015 Platts
A spot ethylene cargo of approximately 4,000-mt from Mexico's Petroquimica Mexicana de Vinilo is up for tender this month, a source close to PMV said Tuesday.

"We have availability and there is demand in Europe," the source said.

PMV, a joint venture between Mexico's Pemex and PVC maker Mexichem, last sold a similar sized cargo to Europe, the source said.

The source close to PMV said that one more cargo could be made available from the company before the end of the year.

PMV uses the bulk of its ethylene for the production of vinyl chloride monomer, which is used in PVC applications, according to market feedback.

VCM economics could play in the decision to sell an additional ethylene cargo, the source said.

"We will assess downstream VCM -- which is also moving lower -- and ethylene market conditions in Q4," the source said.

This cargo would more than likely be offered to Europe, the source said citing falling prices in Asia in recent weeks.

The Asian ethylene market was assessed flat day to day on Tuesday $820/mt, as participants continued to stay on the sidelines.

Olefins traders also agreed that the Europe would be the preferred destination for an ethylene cargo at the moment as it would yield the best netback.

The source could not reveal pricing terms.

In Europe, Platts last assessed ethylene at $1,014/mt CIF NWE on Friday, down $6/mt day to day.
 Print  |    add to Favorites  |    Close