May Europe PX talks stall as buyers seek hikes

14 May 2008 15:24  [Source: ICIS news]

LONDON (ICIS news)--The European paraxylene (PX) May contract settlement has stalled as sellers bitterly fought for increases, deeming an initial idea of a €38/tonne rise on April too low, market players said on Wednesday.

 

The initial number was reported on Friday at €858/tonne ($1,320/tonne) FD (free delivered) NWE (northwest Europe), up €38/tonne month on month

 

One seller said it had no plans to settle before a higher price could be agreed upon.

 

 Another player said it was difficult to tell where it would eventually come to rest, because of the vastly different price ideas in the market.

 

A buyer reiterated this bullish sentiment, adding it had heard rumours of a supplier looking to settle at €880/tonne FD NWE, but believed it to be far-fetched.

 

The settlement was already much later than expected, delayed due to the late Asian conclusion.

 

Europe tends to settle in parity with Asia but the unusually low number of $1,290/tonne CFR Asia, up just $30/tonne, left European producers baffled and resulted in some confusion on how talks would progress.

 

The April contract had been concluded at €820/tonne FD NWE.

 

($1 = €0.65)

 

For more on PX visit ICIS chemical intelligence

For more discussion on the chemicals industry visit ICIS connect

 

By: Fiona Bond
+44 20 8652 3214

< previous article(VIDEO – ICIS news Americas Lunchtime Bulletin 2 November 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly