Europe November PX delayed by ACP prevarication

08 November 2007 16:24  [Source: ICIS news]

LONDON (ICIS news)--European paraxylene (PX) buyers and sellers reported on Thursday that talks on November settlements were immobile as the market waited for news on the Asian contract price (ACP), which was said to be at an impasse.

Asian buyers and sellers had described a gap of $80/tonne (€54/tonne) between their ideas for the settlement, heard within a range of $1,020-1,100/tonne CFR (cost and freight) Asia.

Although discussions had begun in Europe, buyers and sellers said that little would be done until conclusive news had been heard on the ACP, which usually precedes the European settlement of monthly contracts.

“I heard discussions at around the €800/tonne level. But nothing can be done until the ACP has been settled,” said a trader source.

The October contract was settled at €760/tonne FD (free delivered) NWE (northwest Europe), according to global chemical market intelligence service ICIS pricing.

Spot values have since been heard $30-50/tonne higher on the back of recent record high crude oil values.

An industry source reported a spot deal at $1,055/tonne FOB (free on board) Rotterdam, while a trader said it was now offering material at $1,100/tonne FOB Rotterdam on the basis of current high energy complex values.

While players were anxious to hear how prices would settle in Asia, the majority said that they were not too concerned by the prolonged period of negotiation.

($1 = €0.68)

By: Peter Salisbury
+44 20 8652 3214

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