27 January 2012 15:10 [Source: ICIS news]
LONDON (ICIS)--The European butadiene (BD) contract price for February has settled up by €235/tonne ($309/tonne) at €1,935/tonne, on the back of firmer upstream costs and a strong pull from the export market which has seen spot numbers rise significantly over the past month, a major BD producer said on Friday.
The contract price, agreed on a free delivered (FD) northwest European (NWE) basis, was between the major BD producer and two of its customers, both major BD consumers.
Contract parties agreed that discussions had been particularly tough. The gap between the opening positions were wide and there had been a lot of ground to cover.
“We will have to see how the market will react, we face concerns already from our [derivative] customers,” a major consumer said.
A second major producer said it would follow the settlement - direct confirmation from other parties was outstanding at the time of writing.
The January contract had settled at €1,700/tonne FD NWE.
($1 = €0.76)
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