Producers squeezed as July US PX slides 5.25 cts

12 July 2007 18:50  [Source: ICIS news]

HOUSTON (ICIS news)--Producers are in for a squeeze after the US paraxylene (PX) July contract fell 5.25 cents/lb to settle at 55.50 cents/lb ($1,223.55/tonne) DEL (delivered), a producer said on Thursday.

The slide was not unexpected, since the mixed xylene (MX) July contract came off 42 cents/gal two weeks ago. However, the size of the PX loss, combined with the run-up in MX spot barge prices since then, tightened margins for PX producers.

“I’m not surprised, but I’m really disappointed,” the producer said. “With the rise in MX, we’re really going to get squeezed for a while.”

The July settlement was the first loss for the US PX contract since February, when it settled down 1.75 cents/lb at 50.75 cents/lb, according to global chemical market intelligence service ICIS pricing.

US PX producers include Citgo, Chevron, ExxonMobil and Flint Hills Resources.

By: Gene Lockard
1 713 525 2653

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