Europe November butadiene agreed up by €75/tonne

LONDON (ICIS)–The European November butadiene (BD) monthly contract price has been agreed up by €75/tonne at €900/tonne ($1,250/tonne) reflecting gains in the spot market on the back of tight supply and firm demand from Asia, contract participants said on Tuesday.

An increase had been widely expected. Spot prices have risen to €925-1,000/tonne due to supply-driven demand from Asia against a backdrop of supply constraints in Europe because of planned cracker maintenances and some operator’s preference to crack lighter feeds over naphtha.

Three consumers and three producers have confirmed the settlement at €900/tonne.

“It’s the logical number to come out… it is probably the best number,” a producer said.

It emerged that producers had started the negotiations with three-digit targets but there were concerns over how much consumers could pass on to the derivatives.

The contract is done on a free delivered (FD) northwest (NWE) basis.

($1 = €0.72)