25 May 2012 16:19 [Source: ICIS news]
(adds confirmation detail)
LONDON (ICIS)--The European propylene contract settlement for June has been fully confirmed at €1,105/tonne ($1,381/tonne), down by €125/tonne from May, three producers and two consumers said on Friday.
The initial settlement was agreed between one net consumer and one main producer. The same net consumer agreed the same number with a second manufacturer and a pure consumer later followed the settlement with a third manufacturer.
A significant price reduction was widely expected in June, based on relief in upstream naphtha costs and in order to support ailing downstream demand, particularly in the main polymer sector.
The agreement was concluded on a free delivered (FD) northwest Europe (NWE) basis.
Shortly before the initial propylene settlement, the June ethylene contract price was agreed at €1,205/tonne FD NWE, down by €120/tonne from the previous month.
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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