LONDON (ICIS)--European butanediol (BDO) third quarter contracts have been at a €40-45/tonne decrease mostly on the back of price pressure from Asian imports, sources said on Tuesday.
Prices are assessed at €1,985-2,030/tonne FD (free delivered) NWE (northwest Europe).
The €90/tonne price decrease of feedstock methanol in Q3 was also quoted by some buyers as further justification for the agreed reduction.
Some producers, however, insisted that feedstock prices were not playing a crucial role in the negotiations as the market is largely supply/demand driven.
The market is largely balanced and is expected to remain such in the fourth quarter.
Last week US producer Invista declared force majeure on BDO and derivatives. Some sources expect the force majeure to affect the European market by limiting volumes of imported material.
However, the force majeure did not have immediate effect on the European Q3 negotiations.