01 August 2008 08:11 [Source: ICIS news]
SINGAPORE (ICIS news)--The Asian contract price (ACP) for August paraxylene (PX) has seen no settlement despite the deadline having passed on Thursday, and it would likely remain a stalemate for now, said buyers and sellers.
"I think basically, the PX suppliers read the market wrongly," said a leading South Korean trader, referring to the nominations of $1,770-1,790/tonne CFR (cost and freight) Asia for the August ACP.
The procurement manager of a major Taiwanese end-user said, "How can we have a settlement? PX suppliers are asking for $1,550/tonne, $1,560/tonne and $1,600/tonne and spot PX is now only $1,400/tonne!"
Due to massive purified terephthalic acid (PTA) shutdowns and falls in crude oil and aromatics prices, spot PX had fallen to $1,400/tonne CFR Taiwan, shedding more than $300/tonne in less than one month.
"With demand so weak, sellers now have problems disposing off the PX, so the nominations were unrealistic and buyers now would not pay above $1,400/tonne; there’s no easy solution," said another end-user in Taiwan, who confirmed that negotiations were still ongoing.
The ACP is usually settled at the end of every month. For July, it was $1,625/tonne CFR Asia.
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.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|