04 September 2012 12:01 [Source: ICIS news]
LONDON (ICIS)--The European styrene barge contract for September has fully settled at €1,410/tonne ($1,785/tonne), up €43/tonne from August, two producers and three buyers confirmed on Tuesday.
"I agreed it so I am happy. Not happy that the number is always higher than I want, but I am not drastically angry either," said one contract settler on the buying side.
According to another consumer involved, the settlement is in line with expectations and above costs.
“This is in line with expectations from our side,” said one European styrene buyer. “We think it is a fair settlement, spot has really led the push.”
A seller said: “We are quite satisfied. This will bring us some additional margin, and bring us into a more healthy territory. It is better for the industry.”
The contract price was agreed on a free delivered (FD) northwest Europe (NWE) basis.
In relation to the settlement, a trader said: “It’s too high, it’s a demand killer.”
Following the settlement, spot styrene price ideas started to come down, moving from $1,630-1,680/tonne FOB (free on board) Rotterdam to $1,600-1,630/tonne.
Regarding the falling spot prices, a trader said: “It is going to come off big style. Demand does just not warrant €1,680/tonne. It was a supply blip and prices will fall from here to December.”
In the week leading up to contact settlement time, spot styrene prices rose sharply as industry started to buy and traders found the market to be a in a short position because of supply restrictions originating from poor margins.
($1 = €0.79)
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