EPCA '08: Europe players bank on Asia PX Sept deal

28 September 2008 18:01  [Source: ICIS news]

MONTE CARLO (ICIS news)--The Asian paraxylene (PX) contract price for September could be settled by Monday, boosting hopes of a settlement in Europe too, players said on Sunday.

 

The sudden prospect of a breakthrough, rumoured by European PX players on the sidelines of the European Petrochemical Association conference, came after talks in Asia had been at a stalemate for several weeks.

  

Nominations for September were made at $1,460/tonne by Nippon Oil and $1,500/tonne CFR (cost and freight) Asia by Idemitsu Kosan and ExxonMobil but had been deemed “unacceptable” by buyers.

 

It remained unclear at what value the September ACP might be settled, although one European trader was hopeful for a level around $1,100/tonne.

 

Current spot numbers in Asia were assessed at $1,150-1,170/tonne CFR Taiwan by global chemical intelligence service ICIS pricing.

 

The news that the September ACP might soon be concluded filled European players with some hope, as many of them said a September Europe contract price was also long overdue.

 

It was anticipated the price would fall quite sharply, as it was rumoured that a supplier had proposed a provisional September contract price last Thursday at €900/tonne FD (free delivered) NWE (northwest Europe), down €80/tonne from the August contract level.

  

Buyers were hoping for an even bigger decrease, with one PX buyer saying that it was aiming for €800/tonne. The source said on Monday it was imperative that “there was parity between Europe and Asia”.

 

European spot levels were assessed at $1,100-1,150/tonne FOB (free on board) Rotterdam by ICIS pricing.

 

The four-day conference ends on Tuesday.

 

($1 = €0.68)

By: Madelon Ten Cate
+44 20 8652 3214

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