24 November 2010 10:29 [Source: ICIS news]
LONDON (ICIS)--The European December butadiene (BD) monthly contract price (MCP) has been fully confirmed at €1,280/tonne ($1,707/tonne), up by €30/tonne from November, reflecting the tighter supply-demand balance, a major consumer said on Wednesday.
The consumer and two of its suppliers participate in the MCP, which is agreed on a free delivered (FD) northwest Europe (NWE) basis.
Butadiene spot prices had firmed over the past month, driven primarily by strong demand from the export sector.
Higher butadiene spot prices in Asia, resulting from strong demand for synthetic rubber, and production problems in the ?xml:namespace>
Spot prices were assessed at $1,815-1,850/tonne FOB (free on board) NWE on the export market, up from around $1,550-1,580/tonne at the time of the November MCP settlement.
Domestic spot activity had recently been concluded at below €1,100/tonne FD NWE, based on ICIS assessments.
Sources said they expect domestic prices in
Domestic consumers would have to compete for incremental volume, sources added.
However, taking into account end-of-the-year inventory considerations and the traditional seasonal slowdown, European consumers’ additional needs would be limited.
($1 = €0.75)
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