17 July 2008 15:12 [Source: ICIS news]?xml:namespace>
LONDON (ICIS news)--Initial third-quarter butadiene (BD) settlements at €1,220/tonne ($1,936/tonne) between a Netherlands-based producer and two major buyers have been revoked following several settlements €40/tonne higher at €1,260/tonne, the seller said on Thursday.
The producer said that it was necessary to avoid confusion over which number was a representative contract price for the European butadiene market.
“Its clear... no other producers were convinced [to settle at €1,220/tonne]… it’s not a contract price,” it said.
The first third-quarter contract settlement, done at €1,220/tonne a fortnight ago on a FD (free delivered) NWE (northwest
Despite the significant 25% rise from the second quarter, remaining contract sellers were very unhappy with the outcome as they said it did not accurately portray current demand and supply fundamentals.
Supply was extremely tight and demand high which had led to talk of spot prices some €400/tonne higher than the prevailing second-quarter contract price.
Four producers and two consumers have now fully confirmed third quarter BD at €1,260/tonne FD NWE.
($1 = €0.63)
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