13 January 2012 23:59 [Source: ICIS news]
Market participants confirmed that formula-based and freely negotiated EO prices were following the same trend as the ethylene contract, which increased by €40/tonne ($51/tonne) for January.
Formula-based EO prices usually comprise 80-85% of the change in the monthly ethylene price, with 82% taken as a representative average. For January, this means a €33/tonne increase for the majority of contracts.
January EO contract prices were assessed at €1,233–1,400/tonne FD (free delivered) NWE (northwest Europe) and €1,273–1,430/tonne FD MED (Mediterranean).
One producer said it had applied a permanent €25/tonne surcharge to the established ethylene-based price formula.
Another seller supported this initiative and said it is pushing for a surcharge of €20/tonne to be applied to its own contracts, but confirmed that the assessed price ranges are representative of January business.
Freely negotiated EO contracts are mostly moving in line with standard formula-based prices, sources confirmed, although spot volumes are understood to be available at lower prices.
($1 = €0.78)
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