First June European paraxylene contract settlement agreed down Euro14/tonne at Euro660/tonne

02 June 2005 18:09  [Source: ICIS news]

LONDON (CNI)--The first June European paraxylene (PX) contract settlement was agreed down Euro14/tonne at Euro660/tonne free delivered Northwest Europe (FD NWE) on Thursday afternoon.

 

It was agreed between BP Refining and Petrochemicals (BPRP) and a Dutch buyer.

 

The backdrop for the settlement was a dramatic drop in the euro against the dollar and partial settlement of the Asian paraxylene contract price at $790/tonne CFR (cost and freight) Asia Pacific on Tuesday.

 

Originally, consumers had expected a drop in the European paraxylene price of as much as Euro40/tonne. But firmer prices in Asia and the weak euro lent strength to sellers in contract negotiations.

 

The buyer involved today commented that the price was fair, under the circumstances. “It’s a reasonable settlement," the producer said. "The mood is better and people are more optimistic about the future of polyester chain prices.”

 

The May European paraxylene contract price of Euro674/tonne free delivered (FD) Northwest Europe was settled down Euro76/tonne on the May price.

By: Philippa Davies
+44 208 652 3214

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