NewsFlashSecond Oct Euro OX contract at Euro770

14 October 2005 16:53  [Source: ICIS news]

LONDON (ICIS news)--A second European orthoxylene (OX) contract was agreed at Euro770/tonne, 16 days after an initial settlement was reached at Euro730/tonne, buyers and sellers said on Friday.

The deal, which was done this afternoon on a free delivered (FD) Northwest Europe (NWE) basis, was between a German consumer and two major Northwest European producers.

“After various rumours and after long delays, the price has been agreed at this level,” the buyer said.

“The price is a fair compromise,” said one of the major producers who had agreed to the settlement.

The original deal between Austrian phthalic anhydride (PA) producer Atmosa and Hungary’s MOL was confirmed by both parties on 28 September at Euro730/tonne FD NWE, up 34% from the third quarter. No major players had followed this contract price. But the buyer in the case reiterated today that this contract price will remain in place with its supplier.

Suggestions that French producer Total might agree at the lower price level were refuted when the company said their force majeure declaration on OX would exclude them from contract discussions. The contractual caveat was declared on 29 September after strike action at the refinery in Gonfreville, northwest France, removed feedstock from the downstream plants. The strike at the refinery, which had been closed since 23 September, has been extended until Monday, Total sources said on Friday.

Another force majeure at Petrogal’s 50,000 tonne/year unit at Oporto, Portugal was reported on Thursday, but has had a limited impact on the market, they said.

By: Philippa Davies
+44 208 652 3214

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