27 August 2010 13:35 [Source: ICIS news]
LONDON (ICIS)--The initial European September ethylene (C2) contract, which was agreed on Friday at an increase of €10/tonne ($13/tonne) from August at €950/tonne, has so far received support from two main suppliers and two net consumers.
The higher settlement was mainly driven by short supply, resulting from robust derivative demand, as well as recent and forthcoming plant outages, said sources.
Upstream naphtha costs had moved up slightly over the past few days and had ruled out a rollover, said one manufacturer, as had the firmer price trend in olefin values in other regions.
One net consumer said it was reluctant to see increases, but conceded that higher upstream costs over the past week had strengthened the sellers’ argument. This was in combination with pressure in the spot market and short supply, added the consumer.
($1 = €0.79)
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