04 April 2012 15:09 [Source: ICIS news]
LONDON (ICIS)--The April European styrene barge contract has been confirmed at €1,300/tonne ($1,711/tonne), down by €34/tonne from the previous month, according to a second seller and two buyers on Wednesday.
An initial settlement was agreed between one seller and one buyer this morning, and other parties later confirmed that they had followed the initial figure.
The decline reflected the €37/tonne fall in upstream benzene for April, as well as a long and soft spot market, the initial buyer involved said.
The initial seller added that poor demand and the wide range between contract and spot prices also facilitated the price decrease. Spot values for April were assessed at $1,440–1,450/tonne free on board (FOB) Rotterdam at noon on Wednesday.
However, one seller is still holding out for a better deal, saying that €34/tonne was too big a drop – especially considering that the consumer reference price (CRP) only fell by €17/tonne this month, to €1,325/tonne free carrier (FCA) Rotterdam. The benzene reduction was partially offset by the €40/tonne increase in ethylene this month.
“We support the logic of the FCA settlement of a decrease related to raw materials and do not understand the justification for such a large drop in prices,” the seller said.
The contract price was made on a free delivered (FD) northwest Europe (NWE) basis.
($1 = €0.76)
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