Idemitsu settles May PX ACP $30 up at $1,290/t

02 May 2008 10:14  [Source: ICIS news]

SINGAPORE (ICIS news)--Japan’s Idemitsu Petrochemical has settled the May paraxylene (PX) Asian contract price (ACP) with its customers at $1,290/tonne (€833/tonne), $30 up from April, paving the way for a final settlement soon, the producer and some buyers said on Friday.

Idemitsu had revised its May nomination to $1,310/tonne CFR (cost and freight) Asia after initially targeting $1,360/tonne CFR Asia on the back of high upstream crude and naphtha prices but negotiations were tough, a company source said.

“From our stand, a higher price would be better but the long negotiations were not good for both sides,” he said. “If we cannot get enough margins in June, we have to consider operating reductions.”

Nippon Oil was the first key producer to settle the May ACP at $1,290/tonne CFR Asia in late April, up $30/tonne from the April settlement at $1,260/tonne CFR Asia.

This, however, had raised concerns among some buyers who felt that the negotiations had been finished too soon. Talks are usually concluded at the end of the month.

ExxonMobil is now the only key producer left that has yet to wrap up May discussions. Buyers said the producer did not agree with the initial settlements and could possibly reduce contract volumes to some customers.

Company officials were not available for comment.

“They (Exxon) think the price is too low but it is only a matter of time because there are already major settlements,” said one Taiwanese end-user in Mandarin.

PX sellers and buyers typically come round to the same contract price once a major settlement between a key producer and buyer has been reached.

($1 = €0.65)

For more on PX visit ICIS chemical intelligence 

By: Peh Soo Hwee
+65 6780 4359

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