29 February 2012 13:11 [Source: ICIS news]
BRUSSELS (ICIS)--The European March butadiene (BD) contract price has been fully confirmed at €2,185/tonne ($2,953/tonne), up by €250/tonne from the previous month, market sources said on Wednesday.
There was some confusion in the market following an initial settlement at this level on Tuesday which took some contract participants by surprise. The lack of clarity was complicated by player absence in the run-up to an industry function.
Full confirmation has so far been received from at least two major producers and two consumers. This is traditionally the configuration that is required to establish a contract reference price.
An increase had been widely anticipated because of the wide gap between spot and contract levels and the pressure on cracker margins from upstream costs. Consumers had been keen to mitigate producers’ hike proposals in view of the still less-than-healthy domestic demand situation and the declining Asian market.
($1 = €0.74)
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