UpdateEurope Sept FCA styrene down €100/t after barge contract fall

04 September 2009 17:35  [Source: ICIS news]

LONDON (ICIS news)--The European September styrene truck customer reference price (CRP) has been agreed down €100/tonne ($143/tonne) from August, one producer and a consumer said on Friday.

The CRP was settled at €880/tonne FCA (free carrier) Rotterdam.

Players had widely anticipated the fall in the truck contract after the European barge contract was agreed earlier in the week at €874/tonne FD (free delivered) NWE (northwest Europe), down €84/tonne from August.

The producer involved in the talks said: "Styrene margins have been eroded over recent months and are still not acceptable.  Even though we do welcome the small improvement in margin, we still need more."

Sources said it was the first time this year that the styrene barge contract had seen a drop in pricing, which was a compromise of upstream movements, several players added.

The September benzene contract in Europe had settled down an enormous €168/tonne at €576/tonne earlier this week, after spot prices had seen significantly lower values as the market lengthened.

However, upstream ethylene contracts had increased for September by €80/tonne at €875/tonne, it was confirmed some weeks ago, and styrene spot values had also traded about $60-70/tonne higher than when the August contracts were settled.

“The decrease is in line with our original request to cover the raw material price movements,” the buyer involved in the talks said on Friday afternoon.

Meanwhile, September spot styrene traded at $1,092.50/tonne FOB (free on board) Rotterdam on Friday afternoon, which was the lowest deal of the week, according to global chemical market intelligence service ICIS pricing.

($1 = €0.70)

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For more on styrene visit ICIS chemical intelligence

By: Madelon Ten Cate
+44 20 8652 3214

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