30 January 2014 10:58 [Source: ICIS news]
LONDON (ICIS)--An initial European ethylene contract price has been agreed at €1,200/tonne, down by €40/tonne from January reflecting weaker feedstock costs as well as stable-to-soft supply and demand fundamentals, a major producer said on Thursday.
The major producer said it had agreed with three of its consumers - two of which are non-integrated buyers. Confirmation from one of the buyers is pending.
“It’s a good number for buyers,” a buying source said.
Another said; “just look at the gap between spot and contract numbers, minus €40/tonne is generous.”
However, finding a second seller to follow this initial settlement could be tricky, some sources said.
Agreement from a second producer and consumer is needed before the contract price is considered fully settled and established as the benchmark.
The contract is settled on a free delivered (FD) northwest Europe (NWE) basis.
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