04 March 2009 10:43 [Source: ICIS news]
LONDON (ICIS news)--The European orthoxylene (OX) contract price for March was agreed at €550/tonne ($696/tonne) on Wednesday as the initial settlement received further support from buyers and sellers.
The price was settled at an increase of €15/tonne from the February contract price of €535/tonne FOB (free on board) Rotterdam.
According to one producer a larger increase was needed due to tightening supply and a low February contract price, but weak demand proved to be an obstacle in the negotiations.
“It is difficult to say what will happen in March,” added the producer. “The market is depending on Asia for export interest, so we will be watching developments there closely.”
“We initially started negotiations with a rollover in mind,” said one buyer. “Demand is currently very weak, so passing on the increase in raw material costs will be difficult, but €550/tonne is a good compromise.”
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