15 October 2010 16:33 [Source: ICIS news]
The price was agreed on free on board (FOB) ?xml:namespace>
Both producers and consumers said they were unhappy with the price, with the former considering it too low and the latter too high.
Those players that made the initial settlement said they had reached a compromise in order to end the prolonged negotiations, which many sources described as the longest they had ever seen.
“We’re not happy with the price, but we’re happy to have a price,” said a producer involved in the initial agreement.
“It was dragging on too long. I think the whole industry risked getting discredited,” a buyer was quoted as saying when the initial settlement took place.
Many of those not involved in the initial settlement indicated they would follow only after conceding they had little alternative.
“It’s very high compared to other regions. I think it’s unreasonable, especially with the euro/dollar exchange rate. How will demand develop with such a high price? But what choice do I have?” said a large buyer.
Producers were equally dissatisfied with the price, but for completely different reasons.
“We think it’s too low, given that prices in
Sellers were all of the opinion that the fourth quarter would be tight, with global capacity struggling to match the rapidly increasing demand in
Producer Methanex indicated on Friday that it would also set its Methanex European Posted Contract Price (MEPCP) at €277/tonne.
($1 = €0.71)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|