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)
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