January contract prices for European polyolefins -- polyethylene, polypropylene and polyvinyl chloride -- have sunk to multi-year lows following the fall in the January CPs of olefins -- ethylene and propylene. The low density polyethylene CP was assessed at Eur1,207.50/mt (about $1,420/mt) Wednesday, down Eur115/mt since the last assessment on December 17, a near-five year low. The PP contract price fell to Eur1,187.50/mt FD NWE, down Eur110/mt since December 17 tracking the fall in feedstock prices -- a low of nearly two and a half years. And PVC contract prices were assessed at Eur715/mt FD NWE, down Eur55/mt since December 17, a near five and a half year low. The nosedive in prices followed the plunge in feedstock ethylene and propylene contract pries for January. The ethylene and propylene CPs were fully settled on December 23 at Eur880/mt FD NWE and Eur835/mt FD NWE, down Eur130/mt and Eur120/mt on the month respectively, a low not seen since January 2010. A further downside to contract prices for both polyolefins and olefins is expected as naphtha touched a fresh near six year low of $377.50/mt CIF NWE Wednesday. Crude oil prices have been falling significantly, pulling down prices of refined products like naphtha. North Sea sweet crude benchmark Dated Brent fell $1.005 Wednesday to $49.070/barrel, its lowest level in five and a half years, as the sense of oversupply develops in several Atlantic Basin crude markets.

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