28 February 2012 16:32 [Source: ICIS news]
Correction: In the ICIS story headlined Europe “March BD contract agreed up by €250/tonne – producer” dated 28 February 2012, please read the headline as “Initial Europe March BD contract …” instead of “… Europe March BD contract …”. Please read in the first paragraph … The initial European butadiene (BD) monthly contract price … instead of … The European butadiene (BD) monthly contract price …. A corrected story follows.
LONDON (ICIS)--The initial European butadiene (BD) monthly contract price (MCP) for March has been agreed at €2,185/tonne, ($2,913/tonne) up by €250/tonne from February, a major producer said on Tuesday.
The settlement, which is done on a free delivered (FD) northwest Europe (NWE) basis, was between the producer and two of its customers, although confirmation is pending from the buy side.
Another major producer said it would follow this price lead, but has yet to settle a March price with its customers.
A sizeable increase had been widely expected, given the wide gap between spot and contract values and pressure on cracker margins from high upstream costs.
Consumers said that less-than-buoyant European domestic demand levels should mitigate producers’ pricing proposals.
They also noted that signs from the Asian market, which has driven the rapid gains in spot prices, are now suggesting that the market has peaked, with derivative producers unable to pass on their costs.
($1 = €0.75)
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