09 July 2001 00:00 [Source: ICB]
An initial toluene quarter three settlement emerged last week with two deals concluded at E321/tonne FD, E99/tonne down on quarter two.
No other players had followed the UK-based producer and the German and Dutch buyers on this number as ECN went to press.
There were controversial reactions from the market regarding the settlements. One leading seller stated: 'We disagree with this number. This price is far away from our realities as a producer.'
Falling spot prices pulled down by recent downward pressure coming from volatile gasoline prices and virtually non-existent spot activity in the solvents sector strained negotiations for quarter three contracts. These are blamed for the huge drop in the contract price.
However, one industry source said that 'the deal is likely to be followed by most players', and that 'although it means a large decrease on the quarter two price, this was the most realistic settlement at the time it was done'.
The quarter three contract price is already starting to look jaded as bids in the spot market were reported at $245/tonne fob NWE with $247/tonne fob NWE as a done deal as ECN went to press.
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