Europe March BD up by €145/tonne on tight supply, strong demand

23 February 2010 16:25  [Source: ICIS news]

LONDON (ICIS news)--The European butadiene (BD) monthly contract price (MCP) for March has settled up by €145/tonne ($199/tonne) from February as supply has tightened further amid strong demand, a major producer said on Tuesday.

The contract was agreed at €1,125/tonne on a free delivered (FD) basis between Europe's largest producer and a major net consumer. Confirmation from the consumer was still pending.

The supply and demand balance has continued to be tight due to ongoing problems at SABIC's extraction units in the UK and the Netherlands, as well as open arbitrage to the US, where production issues were putting pressure on the European system.

As a result, European prices have firmed significantly, with domestic prices pegged aroun €1,200-1,250/tonne FD and export in excess of  $1,600/tonne FOB (free on board) NWE (northwest Europe), according to global chemical market intelligence service ICIS pricing.

The first-quarter contract was settled at €950/tonne FD NWE.

($1 = €0.73)

For more on butadiene visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Nel Weddle
+44 20 8652 3214

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