Europe January styrene barge settlement agreed at €1,488/tonne
Julia Meehan
04-Jan-2013
LONDON (ICIS)–The European styrene barge
contract price or January has settled at €1,488/tonne
($1,932/tonne), an increase of €60/tonne from the previous month,
producers and consumers confirmed on Friday.
The contract price was agreed on a free on
board (FOB) Amsterdam-Rotterdam-Antwerp (ARA) basis.
“It is a hard month but the derivative
market needs to show strength in demand after the Christmas
break, and we expect higher prices to come in the run up to
outages at the end of the first quarter,” a buyer said.
“So a number just over costs is compromise
reached,” it added.
The settlement however has not been agreed
by major producer.
“We are not supporting this number. I
cannot support this number and this is not recognisable,” the
major producer said.
“The settlement does not respect the market movement.
December was confirmed to €15/tonne and
€60/tonne in January. We need to respect the market decision
at this point but all I can say is that we cannot support it
and we can’t apply it.”
The producer described negotiation as
being very tough as sellers do not want demand to
disappear.
“If prices move any higher it will cause
demand destruction” said one styrene buyer.
The producer went on to emphasis the
December settlement at plus €15/tonne and what followed in
the spot market.
“In December we settled at plus €15/tonne
and we believed there was no demand then spot prices
increased by $125/tonne.”
Another buyer who settled this week said:
“I did plus €60 with one of my suppliers. Basically the
strength of monomer is more because of record benzene prices.
Some suppliers wanted more than the €60/tonne.”
($1 = €0.77)
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