E.on awards

摘要

E.on has concluded, or virtually concluded, its purchases from its enquiry for 2005 supplies. The market, after a week of anticipation and complete dearth of physical business, is now trying to assess the price levels in what is considered a benchmark tender that will significantly influence the direction of the European market. The generator, after gathering some tonnage from traders at the end of last week/ beginning of this week went back to the main suppliers on Wednesday asking for extension on offer validities of one day in a final attempt to land lower prices. However the surge on the paper market on Wednesday and Thursday is thought to have played into the suppliers' hands and speculation is that E.on was not able to better the offers it already had. Despite this E.on purchased material on Thursday at prices described at much lower than the API2 forward curve, which settled at around 74.00 dollars for 2003 and around 77 dollars for Ql 2005 on that day. Last Friday it was reported that the utility was claiming that it had booked a few cargoes at around 72.50 dollars CIF ARA for delivery in H1 2005. However, one supplier claimed that an offer for two panamaxes of multi-sourced product for Ql 2005 at 73.50 dollars CIF ARA, after being provisionally accepted last Friday, was rejected after the big falls on the paper market on the Monday.