24 September 2009 14:01 [Source: ICIS news]
LONDON (ICIS news)-An initial European ethylene (C2) contract for October has been settled at €860/tonne ($1,265/tonne), down €15/tonne from September, due to weaker feedstock naphtha values, a key producer said on Thursday.
The contract, which was agreed on a free delivered (FD) northwest Europe (NWE) basis, was fully confirmed between the producer and one of its customers – a key polyolefins producer.
“Our outlook is that demand will be stable through October, so the slight decrease should reflect the lower naphtha cost,” said the polyolefins producer.
Industry sources said that they expected the initial October contract price to be quickly followed by other contract parties, as it fell within most industry players’ price expectations of a settlement between minus €20/tonne and a rollover.
Another key contract seller said: “It sounds very good.”
However, at least one consumer had been targeting a €50/tonne decrease.
($1 = €0.68)
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