LONDON (ICIS)--An initial European ethylene March contract price has been agreed at €1,180/tonne, down by €20/tonne from February primarily reflecting a soft supply and demand balance, a non-integrated consumer said on Tuesday.
Lengthy supply has resulted in a wide gap between spot and contract prices.
“Demand is not so bad, but there is a too big disconnect between spot and contract prices,” the consumer said.
The contract, settled on a free delivered (FD) northwest Europe (NWE) basis, was between the consumer and one of its suppliers, a major producer.
Two other non-integrated consumers are also heard to have settled with the major producer, however confirmation is pending.Follow Nel on Twitter