Euro Jan paraxylene contract discussions in limbo

05 January 2006 14:36  [Source: ICIS news]

LONDON (ICIS news)--January paraxylene (PX) contract price discussion in Europe were on Thursday in limbo due to contention over the Asian contract price, European market sources said.

ExxonMobil, Asia’s largest paraxylene producer, is the only major that has not agreed to January’s Asian Contract Price (ACP) settlement of $900/tonne cost and freight (CFR) Asia.

Official nominations for the European January contract price have not yet been announced because the Asian contract settlement traditionally sets the tone.

European buyers said they hoped the January contract price would be at parity to the final Asian number. There were rumours in the market, however, that European producers would be seeking Euro830-840/tonne free delivered (FD) Northwest Europe (NWE), but this was not confirmed.

A consumer said it hoped to settle its January contract at Euro770/tonne FD NWE, if the contract price in Asia settles at $900/tonne CFR Asia. Another European buyer anticipated a contract price somewhere between Euro770/tonne FD NWE and Euro800/tonne FD NWE.

Market sources said on Thursday that they did not expect a firm settlement in Europe for another week or two. The absence of key contract settlers from the market, due to holidays, was also said to be contributing to a delayed European January PX contract price.


By: Julia Meehan
+44 20 8652 3214



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