22 January 2013 23:59 [Source: ICIS news]
This slight softening is attributed to muted requirements from the polybutylene terephthalate (PBT) sector, with general demand steady but not strong.
The downward movement of values is limited by relatively high feedstock costs.The contract settles on a free delivered (FD) northwest Europe (NWE) basis.
Furthermore, Asian BDO prices are facing upward pressure from limited supplies, elevated feedstock values and restocking ahead of the Lunar New Year. During recent weeks, a number of European buyers were offered cheaper Asian material. Now the likelihood of this happening appears reduced.
The average first quarter settlement by one European producer was at a €20/tonne decrease from its fourth-quarter range. A second producer finalised discussions at a rollover to a decrease of up to €40/tonne, while a third producer settled most of its contracts down €30-45/tonne from its fourth quarter prices.
Meanwhile, a buyer has settled some of its contracts at a decrease of €40-80/tonne, and a second buyer is negotiating a €50-80/tonne drop from fourth quarter levels. A third buyer is expecting a decrease of €30-50/tonne, while last week another buyer anticipated settling at a rollover or decrease of up to €20/tonne. The steeper decreases tended to be for larger volumes.
A seller said last week that it was expecting to settle contracts at a rollover or decrease of up to €30/tonne.
($1 = €0.75)
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