10 January 2013 15:30 [Source: ICIS news]
LONDON (ICIS)--An initial European cyclohexane (CX) first-quarter delta contract has been agreed at €143/tonne ($186/tonne), a rollover from the fourth quarter of 2012, the buyer and seller involved confirmed on Thursday.
The rollover was attributed to weak demand counterbalancing high energy costs.
The downstream polyamide chain is yet to see any restocking following the start of 2013. Downstream inventories were rationalised in December to lower working capital on year-end balance sheets, and demand has been weak because of poor macroeconomic conditions.
"Now locally in Europe [there's] not much demand around, that's the general feeling, the general settlement. Not seen a single movement actually," a CX producer said.
If the initial settlement is followed then this will yield a January CX contract price of €1,296/tonne ex-works NWE (northwest Europe). The monthly CX contract price is derived from the sum of the CX quarterly delta contract price and the monthly benzene contract price. The January benzene contract price was settled at €1,153/tonne FOB (free on board) NWE, an increase of €69/tonne compared with December.
So far, three CX producers and one buyer have confirmed settling the CX delta at a rollover. One producer, however, said that it would not follow the rollover and was pushing for an increase because of high energy costs.
"What I can confirm is that we very specifically disagree with a rollover and want to distinguish ourselves from this settlement, want higher on higher energy costs," the producer said.
($1 = €0.77)
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