01 July 2009 09:35 [Source: ICIS news]
SINGAPORE (ICIS news)--Asian paraxylene contracts for June and July were settled at lower prices compared to May’s levels due to weaker demand, industry sources said on Wednesday.
The Asian contract price (ACP) for June PX at $990/tonne (€703/tonne) CFR (cost and freight) ?xml:namespace>
The monthly PX ACP is settled usually at the end of the preceding month but negotiations for June PX dragged on longer than usual due to disagreements among major players.
“We settled with our main supplier at those prices as overall downstream markets were less strong,” said a source from Mitsui Chemicals.
Another leading consumer Mitsubishi Chemical confirmed it has agreed to these prices.
Other buyers such as BP and China-American Petrochemical Co have yet to agree on the prices but are widely expected to follow the lead of the two Japanese firms, market sources said.
Early last month, a partial settlement for June PX was reported at $1,010/tonne CFR Asia. The consumer which agreed to this price said an adjustment was “now likely” given that the broader market had settled at a different number.
($1 = €0.71 / $1 = CNY6.84)
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