04 November 2013 10:01 [Source: ICIS news]
LONDON (ICIS)--The European November styrene barge contract has been agreed at €1,365/tonne ($1,845/tonne), an €85/tonne decrease from last month’s settlement, several buyers and sellers confirmed on Monday.
The contract price was agreed on a free on board (FOB) Amsterdam-Rotterdam-Antwerp (ARA) basis.
A decrease had been expected for November, as spot values have gradually moved down over the course of the previous month in line with slower derivative offtake.
There was an upturn in spot pricing last week amid some concerns surrounding prompt availability for the first week of November, but the market has already begun to reverse these gains.
A reduction in feedstock costs for November as well as a firm euro against the dollar also supported a sizable decrease for the styrene barge number this month.
“It could have settled lower but it is a fair number for the time being,” said one of the settling parties. “Most importantly it is a number that derivative markets want to help stimulate demand.”
There had also been some potential for exports from Europe to Asia mid-month to help balance domestic availability as the arbitrage window opened from the ARA region to the far east, but this eventually proved to be short-lived as Asian numbers waned.
($1 = €0.74)
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