25 May 2012 15:35 [Source: ICIS news]
LONDON (ICIS)--An initial European propylene contract settlement for June has been agreed at €1,105/tonne ($1,381/tonne), down by €125/tonne from May, a net consumer said on Friday.
The agreement was concluded with one main producer on a free delivered (FD) northwest Europe (NWE) basis.
The significant reduction was widely expected, based on relief in upstream naphtha costs and in order to support ailing downstream demand, particularly in the main polymer sector.
The net consumer has also agreed the same number with a second manufacturer. Further buyer support was not immediately available.
The magnitude of the decrease was similar for both olefins, driven down by lower costs and fragile downstream market conditions.
($1 = €0.80)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections