UpdateInitial Europe August BD at €1,270/tonne

24 July 2008 13:44  [Source: ICIS news]

(adds detail in paragraphs 4-6)

LONDON (ICIS news)--An initial monthly Europe butadiene (BD) contract for August has been settled down €15/tonne ($23/tonne) from July at €1,270/tonne on the back of a fall in naphtha costs and some relief in supply, said a buyer and seller on Thursday.

The settlement was on a free delivered (FD) basis and was confirmed by INEOS Olefins on the sell side.

“We have not yet seen an easing in the spot prices but this might come in August so we were prepared to give something away on pricing,” said the seller. No discounts are allowed for the MCP.

It was not immediately clear whether other buyers would follow the settlement, with more talks due this afternoon.

The majority of European BD is traded on a quarterly contract basis.

The third-quarter contract was agreed at €1,260/tonne FD NWE (northwest Europe), up €280/tonne on extreme tightness and record high upstream costs.

($1 = €0.64)

For more on visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Edward Cox
+44 20 8652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly