21 December 2010 15:43 [Source: ICIS news]
LONDON (ICIS)--The European January butadiene (BD) monthly contract price (MCP) has been agreed at €1,340/tonne ($1,763/tonne), an increase of €60/tonne from December and €15/tonne up from the fourth-quarter contract, SABIC said on Tuesday.
Maurice Kramer, the company's European marketing and sales manager for aromatics and C4s, said the increase reflected the need to bring the European market into line with the stronger Asian and US markets.
This would help close the arbitrage and reduce the volumes lost to the export market.
The settlement, done on a free delivered (FD) northwest Europe (NWE) basis, marks the first industry-wide contract agreement on a monthly basis.
There had been a long-running debate between industry players over whether a shift from quarterly to monthly contract pricing was justified and workable.
Three major buyers and at least one other major producer were also reported to have agreed at €1,340/tonne. Confirmation was still pending from two consumers
($1 = €0.76)
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