20 June 2006 04:55 [Source: ICIS news]
SINGAPORE (ICIS news)--Nippon Oil, the Japanese paraxylene (PX) major, has settled its July Asian contract prices with two purified terephthalic acid (PTA) producers almost 10% higher than in June, company sources said on Tuesday.
The settlement with PTA majors BP and ?xml:namespace>
Mitsubishi Chemical, another leading PTA producer, was believed to have agreed to the settlement but company sources could not confirm this.
While company officials would not comment on reasons for the higher settlement, traders believe recent spikes in spot values were the main reason behind it. Spot PX values are at $1,240-1,250/tonne CFR Taiwan, higher than $1,150-1,200/tonne in early June.
“Supply has been tight and demand is increasing with new PTA plants starting,” said a Singapore-based trader.
The settlement was lower than spot values as Japanese producers were still cautious, given that PTA prices were only just catching up with escalating PX values, said traders.
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