Initial Europe C3 July contract agreed at €650/tonne, up €85/tonne

23 June 2009 14:15  [Source: ICIS news]

LONDON (ICIS news)--An initial European propylene (C3) July contract settlement has been agreed at €650/tonne ($903/tonne), up €85/tonne from June, in a bid to improve cracker margins amidst a backdrop of a tight supply and demand balance, a major integrated buyer said on Tuesday.

The initial contract, done on a free delivered (FD) northwest Europe (NWE) basis, was between the buyer and two of its suppliers. Confirmation from one of the two suppliers was still pending.

A third producer said that it had also followed the €85/tonne increment with one of its consumers, another major integrated buyer.

An increase had been widely expected given firming feedstock naphtha values which have destroyed cracker margins over the past few weeks, and a tighter than expected supply and demand balance.

Producers had been eyeing increments of up to €150/tonne

($1 = €0.72)

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By: Nel Weddle
+44 20 8652 3214

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