30 April 2013 23:59 [Source: ICIS news]
Correction: In the ICIS story headlined "Europe Q2 BDO contract price assessed up by €30/tonne" dated 30 April 2013, please read in the headline and lead ...assessed up by €10/tonne... instead of ...assessed up by €30/tonne. A corrected story follows.
LONDON (ICIS)--The second-quarter European butanediol (BDO) contract price was assessed up by €10/tonne from the previous quarter by ICIS on Tuesday at €2,070-2,120/tonne.
There was a broad range of settlements from buyers and sellers. Producers reported rises of up to €30/tonne ($39/tonne), alongside some rollovers.
Buyers said they settled contracts at anything from a decrease of €20/tonne to an increase of €30/tonne, with some rollovers also.
The contract settles on a free delivered (FD) northwest Europe (NWE) basis.
Producers had previously announced Q2 increases of €30-80/tonne in order to recoup previous feedstock costs, while buyers spoke about rollovers as a worst-case scenario.
One producer said that negotiations had not been easy given the differences in pricing ideas between buyers and sellers.
Another source said that settlements had taken longer than usual because players were waiting to see what happened in upstream markets.
One buyer said that producers had played a tactical game by announcing price increases in order to prevent any decrease in numbers, which it said would have been a fairer reflection of current consumption.
Buyers and sellers have differing opinions on current supply and demand levels. They agree however that after the second quarter is over, supply is likely to lengthen and prices will be under downward pressure.
($1 = €0.76)
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