06 August 2012 15:07 [Source: ICIS news]
LONDON (ICIS)--The August styrene barge contract has been confirmed at €1,367/tonne ($1,688/tonne), up by €135/tonne from the previous settlement, as the initial agreement between one pair of settlers last week was followed by additional parties in the market.
Following an agreement late on Wednesday 1 August between one major supplier and one consumer at €1,367/tonne, there was some support from other buyers in the market for the number but no clear indications from other sellers that they would follow.
Conversely, one buyer said last week that it would not follow the agreement, as it felt that an increase of €135/tonne was too high given that August is traditionally a slow month in terms of demand.
Another producer said that it was in talks with customers for a settlement higher than €1,367/tonne, but news of the initial number effectively stalled the negotiation process.
Following news of the force majeure declared by Styrolution in North America last week, European spot levels have continued to climb, on availability concerns. Despite August being a traditionally quiet month for activity, sellers wanted this upward trend to be reflected in the contract price.
However, with another pair of settlers stating on Monday that they would follow, this means that the settlement at €1,367/tonne has been confirmed by the required number of players in the market.
($1 = €0.81)
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