23 April 2010 13:29 [Source: ICIS news]
LONDON (ICIS news)--The European May propylene contract has been fully confirmed at an increase of €20/tonne ($27/tonne) by a second net producer and a second pure consumer, the participants said on Friday.
The contract was agreed at €1,000/tonne FD (free delivered) NWE (northwest ?xml:namespace>
The uptrend was attributed to some ongoing shortness in supply, along with firmer feedstock values for European suppliers in exchange rate terms due to the recent depreciation of the euro against the US dollar, according to the settlers.
Other consumers were caught unawares by the speed of the initial olefin settlements, saying that they had not had time to speak to all suppliers and understand both positions.
They also expressed some disappointment at the settlement level, stating that they were expecting a rollover or smaller increase of €10/tonne based on the recent improvements in propylene supply.
However, the consumer that officially followed the second settlement described the difference between an increase of €10/tonne and €20/tonne as “negligible”.
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