25 January 2011 11:29 [Source: ICIS news]
LONDON (ICIS)--Initial European February butadiene (BD) contract settlements have been agreed at €1,440/tonne ($1,973/tonne), up €100/tonne from January, because of strong global demand, a major consumer said on Tuesday.
The first agreements were between the consumer and three of its suppliers, two of which confirmed the price of €1,440/tonne.
A second major consumer also confirmed €1,440/tonne, while confirmation was pending from a third consumer and one other producer.
Another major producer said that it would accept the settlement but considered the number to not be fully reflective of market conditions.
The monthly contract price is agreed on a free delivered (FD) northwest Europe (NWE) basis.
The February settlement marks the second industry-wide agreement on a monthly basis since the quarterly contract pricing mechanism was abolished in January.
($1 = €0.73)
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