07 October 2013 12:25 [Source: ICIS news]
BERLIN (ICIS)--European butadiene (BD) producers have been actively courting consumers overseas to lock in sales volumes for 2014, market sources said on the sidelines of the 47th annual European Petrochemical Association (EPCA) meeting on Monday.
One overseas consumer of BD said it had been approached by NWE (northwest Europe) producers keen to secure its business in 2014.
Europe is structurally long in BD so relies on exports to balance the market.
Given that the outlook for the market next year is generally flat to bearish – the key end-user automotive sector is not forecast to improve at least until the second half of 2014 – sources said it was no surprise that European producers were reducing their exposure to the spot market.
“We are discussing pricing,” the consumer said.
It added that prices would likely be a formula based on the US contract price.
The EPCA meeting runs from 5-9 October.
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