Update1st Europe Q4 BD settles at €1,320/t high

16 October 2008 16:10  [Source: ICIS news]

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LONDON (ICIS news)--The first European fourth-quarter butadiene (BD) contract settlement has been agreed at €1,320/tonne ($1,783/tonne), up €60/tonne from the third quarter, a producer said on Thursday.

The record-high settlement, which was fully confirmed, was between a large European BD producer and a large consumer on a free delivered (FD) northwest Europe (NWE) basis.

Another major consumer was reported to have followed this agreement with another supplier, but confirmation was not immediately available.

“It’s a fair approach,” the seller said, alluding to the fact that recently some producers had been targeting another record increase in the order of plus €200/tonne.

One market observer was still surprised that an increase had been achieved at all “considering where naphtha is”.

Quarterly negotiations had become protracted as contract parties were unable to come to an agreement because of initially widely divergent views regarding supply and demand, and feedstock developments.

The decision making was made even harder by the uncertainties surrounding the repercussions of the current economic turmoil.

Last week, the October monthly contract price (MCP) settled at €1,350/tonne FD (free delivered) NWE (northwest Europe), up €55/tonne from September.

($1 = €0.74)

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By: Nel Weddle
+44 20 8652 3214

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