03 July 2012 09:32 [Source: ICIS news]
An initial agreement was made late on Monday evening between one seller and one buyer, and this was later followed by numerous other players in the market.
One supplier confirmed it had agreed to the figure with two different consumers, while a third later confirmed it would follow this settlement for July.
One buyer said: “I support the number, even if it is not low enough this month.”
Buyers had been pushing for a sizable triple-digit reduction to reflect the €68/tonne reduction for benzene this month and the €170/tonne reduction for the July ethylene number, as well as the ongoing slump in derivative demand.
The soaring benzene prices seen since May 2012 on the back of supply restrictions had also helped support the styrene market, and several consumers believed that a sharp correction for July was needed now the upstream momentum had begun to shift.
One trader also said that significant volumes of imports have been arriving into western Europe for July, both as monomer and as expandable polystyrene (EPS), which has added some further downward pressure on the market.
However, one major European supplier confirmed that it would not be supporting the number in July.
The contract price was agreed on a free delivered (FD) northwest Europe (NWE) basis.
($1 = €0.79)
Follow Truong Mellor on Twitter for daily tweets on the aromatics markets
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