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Europe olefins quiet ahead of 'critical' October contract discussions

September 26/2011

(ICIS) -- There is limited activity on the spot European olefins ethylene and propylene markets ahead of the upcoming October monthly contract settlements, industry sources said on Friday.
Ethylene and propylene spot markets are traditionally slow during contract negotiations, as players like to wait and see the outcome before committing to volumes, but this time around there is not much optimism that normal activities will resume once the new contract numbers have been established.

Other sources said that even some speculation centring on a possible increase in the contracts, as producers push to improve margins that have been faltering on upstream volatility and a weak euro, had not resulted in any fresh interest.

The lack of visibility is weighing on sentiment and there are just too many concerns and worries over the global economic outlook, despite market participants stressing the need for calm. A drop in crude and naphtha prices on Thursday added to the uncertainties.

Expectations for the ethylene contract vary between a rollover and a small increase from Septembers contract price of EUR 1,115/tonne (USD 1,507/tonne) FD (free delivered) NWE (northwest Europe).

Tags:propylene, ethylene.
Category:General News
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