11 July 2008 17:58 [Source: ICIS news]
LONDON (ICIS news)--Contract partners confirmed the settlement of ?xml:namespace>
A source close to a major producer reported on Wednesday the CRP had been settled at €1,245/tonne ($1,945/tonne) FCA Rotterdam, up €55/tonne on the June settlement of €1,190/tonne FCA Rotterdam on ethylene and energy costs.
By Friday, three participants in the CRP mechanism had confirmed that they would follow this number.
Two traditional participants, however, said they would not publicly settle with the producer, reverting to a fallback mechanism.
“It’s too high, even with energy and ethylene up,” said one player. “After the ethylene settlement, which was up €190/tonne, and the benzene settlement, which was done €18/tonne, we expected a much smaller increase and energy is only really worth a few euros per tonne.”
The producer, however, said that in the current context of high feedstock and energy costs that it was necessary to recoup costs to make “long-term production viable”.
($1 = €0.63)
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