31 August 2012 12:47 [Source: ICIS news]
LONDON (ICIS)--The European ethylene contract price for September has been fully confirmed at €1,300/tonne ($1,625/tonne), up by €125/tonne from August, following further buyer support on Friday.
The initial agreement, which was done on a free delivered (FD) northwest European (NWE) basis, was reached between one main producer and one pure consumer. The same buyer also agreed the same number with a second seller.
Following this, a net consumer also settled with one of the producers involved in the first settlement.
The same consumer has also followed this with a few other sellers.
A significant increase was widely expected based on the uptrend in naphtha costs and margin erosion at cracker level.
However, discussions had proved particularly tough this month as intensified feed pressure was being weighed against downstream demand, which remains fragile for economic reasons, and the need for European derivatives to be compettive with other regions.
($1 = €0.80)
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