23 July 2010 11:43 [Source: ICIS news]
LONDON (ICIS news)--The European August monthly contract price for butadiene (BD) has been agreed at €1,460/tonne ($1,872/tonne), up by €60/tonne from July, on the back of healthy demand and heat restrictions at some European extraction units, a major consumer said on Friday.
The consumer said that while a slight slowdown was anticipated because of the summer, recent derivative production problems meant that plants would run fully in order to make up for the lost inventory.
In addition, there was still good demand for spot volumes, while spot prices, although not at the peaks of a couple of months ago, were still high, the consumer said.
Spot prices were being assessed in excess of €1,500/tonne FD (free delivered) NWE (northwest Europe) on the domestic market, while an export deal was reported at $2,100/tonne FOB (free on board) ARA (Amsterdam, Rotterdam, Antwerp).
“Supply looks better, but we have to factor in the heat element,” the consumer added, referring to recent and ongoing high temperatures across Europe, which affect BD extraction rates.
One of the settling counter parties - who had reservations about the June to July rollover at €1,400/tonne FD NWE - said that €1,460/tonne was a fair number.
The MCP contract is agreed between the consumer - the third largest non-integrated buyer in Europe - and two suppliers. Confirmation from one of the suppliers was still pending.
($1 = €0.78)
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