24 June 2005 11:51 [Source: ICIS news]
LONDON (CNI)--July paraxylene (PX) contract prices in Europe are expected to settle at an increase in line with the $40/tonne hike which has taken Asian numbers to $830/tonne cost and freight (CFR) Asia Pacific, consumers and producers said on Friday.
Several major European consumers said they would be negotiating for prices around Euro690/tonne free delivered (FD) Northwest Europe (NWE), while a major producer said it was targeting a price of Euro715/tonne FD NWE.
A contract agreement was not expected this week. Buyers and sellers said they were not in a hurry to settle, preferring to check US dollar/euro exchange rate fluctuations and paraxylene spot prices at the end of the month.
“We want to avoid an early settlement,” said Reto Frank, procurement manager at Voridian. “We have seen early settlements in other markets, which then had to be adjusted. So, although there is not a big discrepancy between buyers and sellers on paraxylene for July, we don’t want to be too early.”
Spot prices for July were firm today at $785/tonne free on board (FOB) Rotterdam, supporting sellers' ambitions. A source at Interquisa pointed out that supply was ample for July, however, and demand was still limited.
The June European paraxylene contract price was agreed at Euro660/tonne FD Northwest Europe, down Euro14/tonne on the May number.
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