28 September 2012 09:38 [Source: ICIS news]
LONDON (ICIS)--The European ethylene contract price for October is fully confirmed at €1,290/tonne ($1,675/tonne), down by €10/tonne from September reflecting a slightly lower feedstock situation, market sources said on Friday.
The initial settlement was between a net seller and a non-integrated consumer, and this was quickly followed by a major olefins producer and a second non-integrated consumer.
“Given the whole picture, this is a fair settlement” the net seller said.
The second non-integrated consumer said.“My position was minus €20/tonne at first, but with the upward trend of naphtha, there was not going to be a better option today [Friday].”
No other seller would be offering any lower prices today, the major olefins producer said.
“Our concern was that upstream would rebound and [our margins] would be crunched,” the producer added.
Sources had said earlier this week that the continuous fluctuations on crude and naphtha and the ongoing worries over demand levels had meant that the October contract price outcome would be difficult to predict.
Stability was therefore seen by many as a viable option.
The contract price is agreed on a free delivered (FD) northwest Europe (NWE) basis.
($1 = €0.77)
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