Europe PX and OX talks stall on market doldrums
04 January 2008 21:48 [Source: ICIS news]
LONDON (ICIS news)--Negotiations for European ortho-xylene (OX) and para-xylene (PX) January contracts sputtered on Friday as too many market participants were absent due to the holiday season.
Vague views on spot values also held up proceedings.
“We have had preliminary discussions, but nothing more,” said a source at one major producer, adding that key contract partners were unavailable. “Not everyone is in the market; a lot of people are still on holiday.”
Buyers were unsure where negotiations would go amid choppy crude trading at $100/bbl (€68/tonne) earlier in the week, but spot prices showed little impact. Closing indications for PX were heard at $1,025-1,040/tonne FOB
OX negotiations felt the strain of the spot market even more, as it was impossible to ascertain exact values for material. Multiple market sources said bids and offers had been absent for weeks with no deals heard throughout December.
Buyers maintained that supply-demand fundamentals would rein in an attempt to raise prices leading into negotiations.
“Producers want more money, but they always do,” said one buyer source. “I think numbers should stay where they are on current supply dynamics. They have enough margin.”
Sellers declined to give exact nominations, but complained that margins were pinched. They made it clear that current energy complex costs would figure largely in their side of negotiations.
December contracts were settled at €722/tonne FD NWE for PX and €720/tonne for OX.
($1 = €0.68)
By: Peter Salisbury
+44 20 8652 3214
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