The second settlement was reported by consumer Novapet with producer BASF, although the latter could not be contacted at the time of writing.
"[The settlement] was a commitment from both sides. It was too low for producers but too high for us," a Novapet source said.
"As a starting point for September [Eur755/mt] is too high, but the next CP will depend on the ethylene movement. It is very difficult to predict at the moment," the source added.
The initial figure was said to have been settled by producer Shell and consumer M&G, with consumer La Seda de Barcelona reporting their acceptance of the figure on August 6.
"The settlement was higher than our worst-case scenario, but the market has been slightly bullish in Asia. Based on the spot prices and the producer lobby in Europe we had to go with the price," a La Seda source said.
Other producers had been reluctant to follow the initial settlement, with one source saying that, once discounts were taken into account, the figure of Eur755/mt did not make sense compared to buoyant bulk market prices.
China Chemical Weekly: http://news.chemnet.com/en/detail-1403616.html
