(ICIS) -- European March ethylene (C2) and propylene (C3) contract discussions are ongoing and several contract players do not expect a settlement before the weekend, market sources said on Friday. The contract negotiations had become drawn out because of the volatility in the upstream crude oil and naphtha markets this week.
Sources said that it was very difficult to fix an appropriate contract price for the whole month given the unpredictability of feedstock and the uncertainties regarding the future stability of the Middle East and North Africa (MENA) region.
A couple of sources said that they wanted to better understand the consequences of the situation in Libya before rushing to settle a price. Others said that it was important that an ethylene and propylene settlement was agreed sooner rather than later.
All sources were in agreement that it was necessary to ensure that the new contract number was established before Tuesday, 1 March.