17 February 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--European maleic anhydride (MA) first quarter contracts have settled at an average increase of €50/tonne ($66/tonne) as a result of rising feedstock n-butane costs, buyers and sellers confirmed on Friday.
First quarter MA contracts settled at €2,075–2,155/tonne FD (free delivered) NWE (northwest ?xml:namespace>
Nevertheless, contracts settled within a wide-range, depending upon starting point and when negotiations concluded.
“Quarterly contracts entirely depended on when they settled,” an MA trader said.
Contracts settled early in the month, before the full extent of feedstock cost rises was known, while demand was low as a result of macroeconomic weakness, and before the market tightened, were settled at a reduction of as much as €70/tonne.
“Conditions changed through the month [of January],” an MA producer said.
Contracts settled towards the end of January and in early February settled at increases of as much as €100/tonne, because of the feedstock price rises, strengthening demand and tightening supply caused by production problems in the market.
“Quarterly contracts we were able to settle at a small reduction, but this was before the production problems, so [it] was very lucky,” an MA buyer said.
The bulk of quarterly contracts have been settled at an average increase of €50/tonne, and were concluded at the end of January.
Sasol-Huntsman declared force majeure at its 105,000 tonne/year MA plant in
The force majeure has been caused by a raw material supply disruption resulting from severe weather conditions in
Sasol-Huntsman, a joint venture between
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