04 April 2013 11:19 [Source: ICIS news]
LONDON (ICIS)--The European cyclohexane (CX) second-quarter delta contract has been agreed at €148/tonne ($190/tonne), up €5/tonne compared with the first-quarter delta, buyers and sellers involved said on Thursday after the initial settlement received further support.
The increase was attributed to tight supply.
European cyclohexane (CX) supply is tight because of a lack of imported material from the Middle East. Some market players said the shortage was the result of production problems in the region, but this 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.
A capro producer, which was not directly involved in the settlement, said CX availability should be increasing given the end of a heavy turnaround schedule in March and that downstream margins are struggling.
“We'd expected [a CX Q2 delta of] €145/tonne, but we knew there would be a certain increase. [CX prices are] reacting against market situation.
“The issues with the availability should be getting better. I understand the energy costs. The real thing is that all the CX chain are completely against any realistic market situation. We're all suffering except them,” the capro producer said.
($1 = €0.78)
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