23 December 2011 10:36 [Source: ICIS news]
LONDON (ICIS)--The European ethylene contract price for January has been agreed up by €40/tonne ($52/tonne) at €1,120/tonne, reflecting firmer feedstocks and expectations of improved demand, market sources said on Friday.
An initial settlement was agreed late on 22 December between a major olefins producer and two of its customers, one a key integrated consumer and the other a key non-integrated consumer.
Direct confirmation has since been receIved from another two producers, while it is pending from a second integrated consumer.
Producers had been targeting an increase based on the need to restore cracker margins, while derivative producers were also very conscious of margin pressures amid continuing concerns over demand.
In related news, the January propylene contract settled at €1,015/tonne, up €20/tonne from December.
The contracts are agreed on a free delivered (FD) northwest Europe (NWE) basis.
($1 = €0.77)
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