Soaring MX pushes US OX up 3.5 cents/lb in January

09 January 2006 18:40  [Source: ICIS news]

BUENOS AIRES (ICIS news)--January contract price settlements were reached late in the week ended 6 January at 40 cents/pound ($881.60/tonne) free on board (FOB), up 3.5 cents/pound from December, primarily because of stronger feedstock mixed xylenes (MX) prices, US producers and consumers said on Monday.

 The January US MX contract price between a major buyer and its suppliers jumped by 15% from December, settling up 30 cents/gal at $2.30 (Euro1.90)/gal FOB. Meanwhile, soaring gasoline prices propelled US spot MX prices into the $2.40s/gal, with February material reportedly booked at 2.44/gal FOB US Gulf early on Monday.

Increased offshore demand for US Gulf OX was also mentioned as a driver behind rising domestic contract prices.

One US Gulf producer said OX requests from Latin America were on the rise, with Mexico and several South American countries heard showing interest. Nevertheless, surplus OX for export sales was regarded as tight, as two US Gulf Coast producers claimed not to have excess material in January.

US producers originally set out to secure 3.5-5 cents/pound hikes for January contract price levels, as nominations were issued mid-December in a 40-41.5 cents/pound FOB range.

The January 2006 settlement level of 40 cents/pound FOB was the highest reached since September 2005, when contract prices were settled at 43 cents/pound FOB.

By: Edson Jones
+1 713 525 2653

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly