3rd styrene barge agreed for first time in 3 months

04 June 2008 09:59  [Source: ICIS news]

LONDON (ICIS news)--A third European barge styrene contract has been settled for the first time in three months for June, at €1,185/tonne ($1,823/tonne), the contract partners confirmed on Wednesday morning.

 

The contract was concluded on an FD (free delivered) NWE (northwest Europe) basis.

 

The contract price had been expected to rise significantly, in light of the recent rapid upstream movement.

 

However, “with the increase of benzene and energy we are not even able to cover production costs”, a source at the producer said.

 

The partners had not managed to reach a public settlement in April or May, and had had to revert to a fallback mechanism.  This had caused consternation in the market, with players calling for greater transparency in settlements.

 

A second Europe June barge styrene contract was settled up €85/tonne on Monday to €1,145/tonne on stronger spot styrene and benzene values alongside record energy costs. The initial Europe styrene barge was also settled up €85/tonne at €1,190/tonne.

 

($1 = €0.65)

 

 

By: Fiona Bond
+44 20 8652 3214

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