Europe Q3 BD confirmed at €1,260/tonne

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(BD) settlements at €1,220/tonne ($1,936/tonne) between a Netherlands-based producer and two major buyers have been revoked following several settlements €40/tonne higher at €1,260/tonne, the seller said on Thursday.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 Europe) basis, marked a €240/tonne increase from the last quarter.

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.

Other producers and the same two major consumers came to an agreement on Wednesday at €1,260/tonne, up €280/tonne from last quarter but €40/tonne higher than the initial settlement.

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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< previous article(ICIS Chemical Business podcast November 2, 2009)

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