10 August 2011 17:52 [Source: ICIS news]
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“We are interested in looking for a new number,” a major supplier said.
Producers are unimpressed with the first settlement that was agreed on 1 August, and are targeting higher figures.
“I do not believe [there will be] a new number,” a buyer surmised.
Sellers had originally been seeking close to €1,100/tonne in an effort to reflect the demand/supply balance as they see it. Proposals of plus €10–15/tonne were also reportedly on the negotiating table in early August, according to the buy side.
“We can follow but at the moment the first [settlement] was done our supplier said they wanted to wait,” the buyer explained, adding that he expects to see a joint August/September settlement.
After the initial agreement, prices rallied in the influential Asian market, only to then slip back again.
Meanwhile, European spot bulk prices have soared from lows of €920/tonne CFR (cost & freight) NWE (northwest Europe) on 5 August, to a deal at €985/tonne that was concluded on Monday.
“I think in a few weeks [spot] numbers will soften as concerns over the broader economic picture will start to weigh on sentiment,” a second customer said.
Contract discussions remain deadlocked.
The July contract price was agreed at €1,044/tonne FD (free delivered) NWE.
($1 = €0.70)
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