01 March 2011 10:19 [Source: ICIS news]
LONDON (ICIS)--The March European butadiene (BD) contract price has settled at €1,555/tonne ($2,150/tonne), up €115/tonne from February, as a result of strong demand and upstream volatility, market sources said on Tuesday.
A major butadiene producer confirmed the initial settlement late on 28 February.
So far, two producers and two consumers have confirmed the settlement of €1,555/tonne. Confirmation from a third consumer and four other producers was still pending.
Sources had anticipated a fairly sizeable price hike for March. The 8% month-on-month increase reflected the ongoing strength of demand in Europe and globally.
High prices and strong demand in the US and Asian markets had continued to draw European volumes away from the local market through February.
European supply was likely to be constrained, sources said, because of planned maintenance at a BD extraction unit in the Netherlands and scheduled turnarounds at a number of crackers.
Sources added that the recent tendency to crack light feeds would limit the production of the BD feedstock crude C4.
Spot prices were firm and pegged within the low-to-mid-€1,600s/tonne FD (free delivered) NWE (northwest Europe).
($1 = €0.72)
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