17 April 2009 17:50 [Source: ICIS news]
HOUSTON (ICIS news)--US orthoxylene (OX) producers have nominated May price increases of more than 2.50 cents from a month earlier, citing a contango situation and forecasts of an increase in gasoline values, sources said on Friday.
Producers nominated 39.00 cents/lb and 41.00 cents/lb for May contracts, sources said.
The US OX April contract was finalised at 36.50 cents/lb ($805/tonne, €612/tonne).
The proposed increases stem from a contango forming in US mixed xylene (MX) prices and the prospects of gasoline values picking up steam, a producer said.
In the first three months of 2009, mid-month nominations proved to be higher than the eventual benchmark, but April contracts were finalised in at the upper nomination after MX prices shot up at the end of March.
Those levels are higher than the April MX contract range of $2.05-2.10/gal.
ExxonMobil and Flint Hills Resources are the major US producers of OX.
($1 = €0.76)
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