Europe PX bids boosted $30/t on energy, Asia

03 March 2008 17:56  [Source: ICIS news]

LONDON (ICIS news)--Bids for paraxylene (PX) climbed $30/tonne (€20/tonne) in Europe on Monday, as values spiked in Asia, crude hit record highs and supply concerns saw renewed buying interest in the recently stagnant market, players said.

Bids and offers were heard at $1,130/tonne FOB (free on board) Rotterdam and $1,160/tonne FOB Rotterdam, up $10-30/tonne from Friday’s close, when a lone trader had been bidding at $1,100/tonne FOB Rotterdam.

“When you look at it, there are no arbitrage options from Asia or the US, the window is closed, energy is back up and prices in Asia just went up a lot as well,” said a consumer source.

“Europe follows Asia anyway and with the contract up $70/tonne over there it makes sense, although the numbers are very high.”

Spot PX values in Asia have improved almost $100/tonne in the past month, and were assessed at $1,200-1,210/tonne FOB Korea, stable from the previous Friday’s close.  

Crude oil had hit record highs for both Brent and NYMEX crude earlier in the afternoon, adding further upwards pressure to the market, players said.

A widely discussed turnaround at ExxonMobil’s PX facility at Botlek, the Netherlands, also added a feeling of tightness to the market, players said. The unit has a capacity of 575,000 tonnes/year, according to ICIS plants and projects.

Players were also awaiting settlement of the March paraxylene contract in Europe, with Asia having settled its contract price up $70/tonne, at $1,170/tonne CFR (cost and freight) Asia, on Friday 29 February. Buyer and sellers expected a settlement in Europe, which usually follows Asia, within the next 24 hours.

($1 = €0.66)

For more on PX visit ICIS chemical intelligence

By: Peter Salisbury
+44 20 8652 3214

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