04 April 2013 10:51 [Source: ICIS news]
LONDON (ICIS)--An initial European cyclohexane (CX) second-quarter delta contract was agreed at €148/tonne ($190/tonne), a rise of €5/tonne compared with the first-quarter delta, the buyer and seller involved said on Thursday.
The increase was attributed to tight supply.
A second seller confirmed it had also agreed a second-quarter delta contract at €148/tonne. Further confirmation from buyers is pending.
European cyclohexane (CX) supply is tight because of a lack of imported material from the Middle East. Some market players said this was the result of production problems in the region, but could not be confirmed at source.
There were also unconfirmed reports of production problems at several European producers which have limited supply.
“I think it's very tight right now. We've seen interest from producer and consumers for spot and there's none available. I think at least two producers have issues,” a CX producer said.
The CX monthly contract is composed of the quarterly delta CX contract price and the monthly upstream benzene contract price added together.
The April benzene contract price was confirmed on Wednesday at €992/tonne, down €62/tonne from the previous month.
If the initial CX Q2 delta contract is confirmed, this will yield an April CX contract price of €1,140/tonne ex-works NWE (northwest Europe)
($1 = €0.78)
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