02 December 2010 15:17 [Source: ICIS news]
LONDON (ICIS)--December toluene contracts have been confirmed at $962.50-965/tonne (€731.50-733.40/tonne), up $75-77.50/tonne from the previous month, as the initial settlement received further support from players.
One buyer previously confirmed that it had settled December at $962.50/tonne. Later, one supplier said that it had agreed December contracts at $965/tonne.
Another major seller said that it had agreed contracts within the range.
According to one of producers involved, the increase was a reflection of where the current market is, based on supply constraints and recent spot values.
Another seller said: “The general feeling was that the market would remain tight for the first half of December, after which the imports scheduled to arrive from the US would ease some of the supply restrictions.”
There had been mixed opinions regarding the amount of cargo scheduled to arrive and the potential impact on the European market.
While the general consensus was that most of the volumes were pre-sold, this nonetheless meant that customers would be covered for December, taking off some of the upward pressure on prices seen in recent weeks.
Contracts were agreed on a free on board (FOB) northwest Europe (NWE) basis.
($1 = €0.76)
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