19 April 2013 23:59 [Source: ICIS news]
The contracts were concluded on a free delivered (FD) northwest Europe (NWE) basis. The vast majority of European VAM contracts are now priced on a monthly basis.
Most market participants said that modest decreases had been agreed for April prices, based on lower ethylene costs, good availability and unseasonably weak demand for VAM.
One producer indicated that its prices had fallen by up to €30/tonne and had been agreed at €830/tonne FD NWE and above, although it said that most of its April contracts had been settled at €850-860/tonne FD NWE.
The source said that demand from the construction industry has improved following the unusually long winter season.
A second producer said its April contracts had largely rolled over from March, although spot prices had slipped by €5-10/tonne.
The source said that demand has picked up, and noted that European market sentiment is being boosted by production problems in the US.
A third producer previously said its April prices had fallen by an average of €5-10/tonne and were at €835/tonne FD NWE and above.
A fourth producer had reported rollovers, with price levels in the mid-€800s/tonne FD NWE. The source said that demand should improve next month, and it is likely to seek stable or higher prices for May.
Buyers confirmed that April contract prices had slipped, with minus €10/tonne indicated as a representative outcome.
One said it had settled its prices in the low €800s/tonne FD NWE, but this was below the level indicated by other sources.
Another buyer said it had limited interest in spot tonnes, as there is no sign yet of stronger demand. The source said it had received offers within the assessed range for spot material.
Spot prices were assessed stable on Friday in the range of €830-850/tonne FD NWE.
($1 = €0.77)
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections