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AKARTA: Publicly listed PT Chandra Asri Petrochemical announced on Friday that it recently signed an ethylene sales deal with its subsidiary, PT Styrindo Mono Indonesia.

Styrindo uses ethylene to produce styrene monomer, a compound needed by synthetic rubber and plastic makers. Styrindo is currently the only producer of styrene monomer in Indonesia.

According to a report submitted to the Indonesia Stock Exchange, the deal’s period is one year, effective from Jan.1 to Dec. 31, 2012.

“The company agreed to sell and deliver 19,500 metric tons of ethylene a quarter with a tolerance of plus or minus 10 percent. The delivery will use two options; through cargo with a capacity of 3,000 metric tons a delivery, and through pipeline,” the report said.

Both parties will base prices for ethylene on data from the ICIS-LOR, an independent petrochemical market information provider whose prices have become a benchmark for the global chemical industry.