PX September, October ACPs still in limbo

02 October 2008 03:31  [Source: ICIS news]

SINGAPORE (ICIS news)--The September and October Asian contract prices of paraxylene (PX) remained unsettled despite the just-ended annual meeting of the European Petrochemical Association, which brought all key market players together earlier this week in Monte Carlo, market sources said on Thursday.

 

Buyers were not inclined to make counter-offers. “It’s not relevant given such poor margins for ourselves and the possibility of even worse margins if we agree to any price,” said the procurement manager of a major Taiwanese purified terephthalic acid (PTA) producer.

 

The September nominations were initially pegged at $1,460-1,500/tonne CFR Asia, while October nominations were at $1,250-1,270/tonne.

 

Spot prices as of Wednesday, meanwhile, stood no higher than $1,080/tonne CFR Taiwan, said buyers and sellers.

 

“To the buyers, what the suppliers are asking for is too much. To the sellers, they had tried their best to accommodate but oil prices had recovered strongly in the past few days,” said a Singapore-based trader.

 

The August ACP was only partially settled at $1,370/tonne CFR Asia, down sharply from July’s $1,625/tonne, with disagreement from major Japanese suppliers.

 

“We don’t know how this would pan out, and if you ask what’d become of the ACP system, your guess is as good as mine,” said a veteran PX broker based in Korea.

 

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By: Salmon Aidan Lee
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