02 November 2009 16:21 [Source: ICIS news]
LONDON (ICIS news)--The European November styrene barge contract has been agreed at €813/tonne ($1,196/tonne), down €16/tonne from October, a producer and consumer said on Monday.
“The negotiations were tough this month,” the producer involved in the talks said.
The source explained: “The outcome was a compromise between market length and short term raw material increases.”
At the same time, sentiment into the forward month was down with December traditionally a weak month due to the holiday season.
Therefore the seller said that it did not make much sense to pass on the full raw material increase at this stage while “all the market needs is stabilisation.”
Last week, upstream ethylene and benzene contracts were agreed down €27/tonne and up €42/tonne respectively, which had previously sparked discussion about the amount of increases that were needed.
Based purely on upstream movements, the producer involved said that a hike of €30/tonne for November was realistic.
Spot styrene values had come off by more than $100/tonne since the October contracts were settled, however, and last week, several other players still talked decreases of up to €90/tonne possible.
On Monday afternoon, November spot styrene values were assessed at $970-990/tonne FOB (free on board) ?xml:namespace>
The contract was settled on a free delivered (FD) northwest
($1 = €0.68)
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