23 December 2011 10:11 [Source: ICIS news]
LONDON (ICIS)--The European propylene (C3) contract price for January has been fully confirmed up by €20/tonne ($26/tonne) at €1,015/tonne FD (free delivered) NWE (northwest ?xml:namespace>
This agreement was reached between a net producer and a net consumer and followed the initial settlement agreed between one net producer and two pure consumers.
Following the former settlement, which came on Wednesday afternoon, other sellers had voiced their discontent at the level of increase, which they considered insufficient.
This was in view of already low cracker margins and the recent firming trend in the upstream naphtha market, exacerbated by the strength of the US dollar against the weak euro.
The sellers said that increases of €30-40/tonne would have been more acceptable, although hikes of up to €75-80/tonne had also been targeted.
The second settling seller, however, agreed the number on Friday, albeit “with some reluctance”, but this was reportedly weighed against the need to have a fully confirmed settlement before the Christmas holidays.
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