July OX contracts gain 5 cents on crude

10 July 2008 21:50  [Source: ICIS news]

HOUSTON (ICIS news)--US July orthoxylene (OX) contracts moved up 5 cents/lb to fully settle at 64.50 cents/lb ($1,422 or €910/tonne)  driven by recent gains in the energy complex, buyers and sellers said on Thursday.

The FOB (free on board) US Gulf (USG) settlement came in at about half of the plus 9.5-10.5 cent/lb nominations of 69 and 70 cents/lb. Buyer resistance to the full proposed increase was stiffened by five consecutive increases and weak demand in downstream unsaturated polyester resin (UPR) and phthalic anhydride (PA).

Feedstock cost support for the full nomination was also weakened as crude pulled back from the $140s/bbl during the week.

The plus-5 settlement followed five months of higher prices on crude oil and mixed xylene (MX), where values have gained 46% and 33%, respectively. That compares with a 34% price increase in OX during the same period.

Sellers said the OX spot market remained inactive throughout the negotiation process.

OX producers in North America include Chevron Phillips, ExxonMobil and Flint Hills Resources. The main buyers include BASF, Koppers, Stepan.

($1 = €0.64)

For more on OX visit ICIS chemical intelligence

By: Landon Feller
+1 713 525 2653

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