27 January 2011 09:18 [Source: ICIS news]
LONDON (ICIS)--An initial European propylene (C3) contract settlement for February has been agreed up by €35/tonne at €1,105/tonne ($1,514/tonne), a major consumer said on Thursday.
The fully confirmed contract, on a free delivered (FD) northwest Europe (NWE) basis, was between the major consumer and one of its suppliers, a major Mediterranean-based producer.
The increase, which takes the European propylene contract to a second consecutive high, was widely expected because of a tight supply and demand balance and a bullish outlook for feedstock.
Other key contract parties have yet to signal their acceptance. Traditionally, it takes two producers and two consumers to formally agree before the number is established as the industry benchmark.
($1 = €0.73)
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