Second buyer follows Europe ethylene March contract price at €1,035/tonne

Nel Weddle

23-Feb-2017

Second buyer follows March ethylene hikeLONDON (ICIS)–A second non-integrated ethylene consumer has followed the initial agreement for the March contract price at €1,035/tonne, up by €15/tonne from February, it said on Wednesday.

So far, one producer and two consumers have directly confirmed at this level.

However, the new month’s contract price cannot be established unless there is a minimum of two producers and two consumers in full and confirmed agreement.

Initial reaction from remaining contract participants has been one of surprise: at the early timing, with many sources expecting discussions to roll into next week, and surprise at the magnitude of the increase.

Some sources were anticipating a feedstock-plus settlement because of current supply and demand conditions.

The contract price is agreed on a free delivered (FD) northwest Europe (NWE) basis.

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