Europe July PX confirmed up €135 at €1,085/tonne

14 July 2008 17:31  [Source: ICIS news]

LONDON (ICIS news)--The European July paraxylene (PX) contract was confirmed at €1,085/tonne ($1,722/tonne), a €135/tonne jump from June, on Monday, with the majority of buyers following the settlement despite initial reluctance.

Sellers’ expectations had fallen on July, with many labelling the month as the optimum time to see an increase due to rising feedstock costs.

"With feedstock levels where they are, we need this sort of number," one said.

Buyers had been preparing themselves for a significant increase given the hikes incurred across the Asian contract price (ACP) which was agreed $185/tonne higher in July at $1,625/tonne CFR (cost and freight) Asia.

The ability of European producers to achieve such a hefty increase still surprised some buyers.

"This is far higher than we expected," one admitted, adding that it hoped the August agreement would fail to reach such highs.

The contract was concluded on an FD (free delivered) NWE (northwest Europe) basis.

($1 = €0.63)

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By: Fiona Bond
+44 20 8652 3214

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