19 February 2009 13:52 [Source: ICIS news]
LONDON (ICIS news)--Sentiment in the European xylenes market has been improving over the last week due to renewed buying interest, players said on Thursday.
Price ideas for both orthoxylene (OX) and paraxylene (PX) had been notionally raised due to tightening supply levels in ?xml:namespace>
“This will eventually influence the European settlements for March,” said one trader, adding that it expected to see both OX and PX contract prices increase from previous levels.
For OX, sources said that the recent increase in Asian prices had also driven buying interest for exports to the region.
Spot prices across
PX values in Asia had been climbing up significantly in February, and producers were now targeting a March contract price for PX of over $900/tonne, compared with the February Asian contract price of $720/tonne CFR (cost and freight) Asia.
Tighter global supply of PX was also applying upward pressure to ongoing contract negotiations for February in the
However, the OX and PX markets in
Market participants blamed the drop in crude oil futures as well as increased resistance from downstream consumers for the slowdown in buyer interest.
($1 = €0.80)
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