Initial Europe propylene June contracts roll over at €1,000/tonne

25 May 2010 15:42  [Source: ICIS news]

LONDON (ICIS news)—Initial settlements for June European propylene (C3) contracts have been agreed at a rollover of €1,000/tonne ($1,234/tonne), a major integrated consumer said on Tuesday.

“With the weak condition of raw materials, I do believe that a rollover was the best compromise,” one of the counterparties commented.

The contract, settled on a free delivered (FD) northwest Europe (NWE) basis, was between the consumer and three of its suppliers.

Two of the suppliers confirmed the settlement, while the third would not confirm in line with its company policy.

Propylene in Europe was currently considered balanced-to-tight, but there were expectations that supply constraints because of recent cracker and refinery FCC (fluid catalytic crackers) hiccups would resolve in June. Spot prices were being assessed at around €980-1,000/tonne CIF (cost insurance and freight) NWE, according to global chemical market intelligence service ICIS pricing.

Meanwhile, an initial European ethylene (C2) contract for June was agreed at €970/tonne ($1,197/tonne), a major olefins producer said.

($1=€0.81)

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By: Nel Weddle
+44 20 8652 3214

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