06 December 2013 23:59 [Source: ICIS news]
The price represents 82% of the upstream December ethylene contract plus an annual conversion fee, or "adder".
The majority of EO contracts are formula-based, and any price movement tends to comprise 80-85% of the change in the ethylene price, with 82% taken as an average for assessment purposes.
European ethylene contracts rose by €30/tonne to €1,225/tonne FD NWE from November to December.
EO contract prices for December were assessed at €1,348-1,515/tonne FD (free delivered) NWE (northwest Europe) and €1,403-1,560/tonne FD MED (Mediterranean).
Demand has tailed off and this impacted discussions regarding 2014 fees over conversion costs.
Players still mostly spoke of increased “adders” from 2013 to the 2014, but the later the discussion the lower the price, according to some. Hikes of €15-40/tonne have so far been reported.
($1 = €0.73)
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