03 July 2012 15:08 [Source: ICIS news]
LONDON (ICIS)--Some initial European toluene contracts for July have been reported at $1,110-1,125/tonne (€877-889/tonne), down $75-85/tonne from the previous month, sources said on Tuesday.
An initial settlement was heard late last week at $1,100/tonne from one consumer, although this has yet to be confirmed by the seller involved.
Other players felt it was on the low side, but otherwise conceded that the market had softened over the course of June amid weaker crude and energy numbers as well as ongoing instability within the eurozone and the ramifications this may have on the petrochemical industry.
One major European supplier said on Tuesday that it had agreed July volumes between a range of $1,110-1,120/tonne across the board.
A buyer later added that it had settled July contracts at $1,120/tonne and $1,125/tonne, while another seller said it had agreed volumes this month at $1,110/tonne.
There was a spot deal late last week at $1,122/tonne FOB (free on board) Rotterdam, and several producers believed this helped support some of the higher numbers agreed for July volumes.
Sellers have kept offers for July spot material steady at $1,120/tonne despite crude futures dropping by up to $2.00/bbl earlier this week.
Oil prices later recovered the majority of these losses this morning on news that Iran has drafted a bill to block the Strait of Hormuz shipping lane.
Bids were as low as $1,050/tonne, but one seller did not believe these were serious but rather the result of buyers “fishing” for lower prices.
The contracts were settled on a FOB northwest Europe (NWE) basis. Further confirmation from other players is pending.
($1 = €0.79)
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