Nippon Oil, Idemitsu seek $130-140/tonne hike in June PX ACP

18 May 2009 08:07  [Source: ICIS news]

SINGAPORE (ICIS news)--Japanese producers Nippon Oil and Idemitsu Kosan have proposed $130-140/tonne (€96.2-103.6) hike in June paraxylene (PX) cargo prices from May, citing tight supply and stable demand, market sources said on Monday.

"The [current] situation is still tight supply, and demand remains okay," said a source from Idemitsu, which nominated an Asian contract price (ACP) of $1,140/tonne CFR Asia.

Nippon Oil’s June price was $1,130/tonne CFR Asia, said a company source.

Two major customers in Taiwan said the proposed hikes from the May settlement of $1,000/tonne CFR Asia were "within expectations" as spot prices remained pegged at around $1,120/tonne CFR Taiwan.

Nippol Oil and Idemitsu are two of the four major PX producers in the region.

Last week, ExxonMobil had proposed selling its June PX at $1,160/tonne CFR Asia.

Together with a fourth major Japan Energy, which is not part of the monthly Asian contract price system, the producers sell more than 50% of the PX produced in the continent.

($1 = €0.74)

For more on PX visit ICIS chemical intelligence
For more on Nippon Oil and Idemitsu Kosan visit ICIS company intelligence
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By: Salmon Aidan Lee
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