05 November 2012 09:58 [Source: ICIS news]
An initial settlement was done at $1,335/tonne, with the consumer involved noting that there had been a wide gap between buyers and sellers this month.
Another buyer later confirmed it had settled November at $1,325/tonne. One producer then agreed several contracts between a range of $1,325-1,335/tonne before another supplier late on Friday 2 November confirmed monthly contracts at $1,330/tonne.
“It was a tough discussion this month,” one seller said, adding that while some imported material was expected to ease some of the supply constraints in the market, there was some debate as to whether the cargo with nitration grade or toluene di-isocyanate (TDI) grade.
Another producer added that discussions had been especially difficult, and some players had reverted to a fallback position, with buyers originally pushing for numbers lower than $1,300/tonne in some cases.
While some downward correction had been expected as activity winds up ahead of year end, northwest Europe toluene supply is expected to remain tight and prices relatively bullish into 2013 on production constraints and strong derivative demand in eastern Europe.
The contracts were settled on a free on board (FOB) northwest Europe (NWE) basis.
($1 = €0.78)
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