01 August 2011 11:01 [Source: ICIS news]
LONDON (ICIS)--An initial European August toluene settlement was heard this morning at $1,215–1,220/tonne (€838–842/tonne) FOB (free on board) NWE (northwest Europe), up $85–115/tonne from the previous month, a producer said on Monday.
Negotiations proved difficult again this month, according to the producer, as the market remains illiquid and a wide gap has emerged between buyers and sellers.
“There is no European material being offered,” said the producer, adding that sellers are therefore looking at US numbers plus freight into Europe as a yardstick for domestic pricing.
Producers were unhappy with the July contract numbers, which they felt had been agreed at too low a level considering the restrictions on availability in Europe. As a result, many are expecting suppliers to push for a sizeable increase from the previous month’s range.
However, buyers spoke of downwards pressure coming from some end-use markets, most noticeably from the toluene di-isocyanate (TDI) sector. One major consumer highlighted the fact that the toluene contract settlement has steadily risen since November 2010, which seems at odds with the muted activity levels seen during this period.
Further confirmation from other players is pending.
($1 = €0.69)
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