NPRA '08: US PX margins could disappear in April

31 March 2008 23:42  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS news)--US paraxylene (PX) producers may go into April with expected revenues below variable costs, a market participant said on Monday.

 

“Suppliers have never entered the heavy driving season with costs as high as they are now,” the industry source said.

 

With anticipated raw material price increases of 6-7 cents/lb ($132-154/tonne) and PX suppliers seeking hikes of around 4-5 cents/lb, April may bring sales that are below costs.

 

US participants said insufficient hikes on the PX Asian contract price (ACP) over the past eight months have undermined US producers’ ability to seek higher prices.

 

Further increases in crude oil values will exacerbate the problem, the source said.

 

The April ACP moved up $90/tonne to settle at $1,260/tonne DEL late last week. 

 

US March PX contracts moved up 4 cents/lb to settle at 58.25 cents/lb ($1,284/tonne).

 

US suppliers of PX include Chevron Phillips, ExxonMobil and Flint Hills Resources.

 

($1=€0.63)

 

For more on PX visit ICIS chemical intelligence

By: Landon Feller
+1 713 525 2653

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