27 June 2013 10:52 [Source: ICIS news]
LONDON (ICIS)--A second major producer has confirmed agreement of the European ethylene contract price for July at a rollover of €1,170/tonne ($1,519/tonne), thereby establishing it as the new reference benchmark, it said on Thursday.
Stable feedstock and supply and demand fundamentals were behind the rollover. The propylene July contract price also rolled over from June at €1,040/tonne.
The contract, which is agreed on a free delivered (FD) northwest European (NWE) basis, was settled initially between a major consumer and a major supplier. A second major consumer later followed with this major producer and a second major producer.
A major consumer said that a rollover in July offered stability, and was less risky than trying for an increase in August, which would be more difficult.
However, one consumer said it was “more than disappointed” at the outcome.
($1 = €0.77)
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