EPCA '09: Europe October paraxylene confirmed down €145/tonne

05 October 2009 10:51  [Source: ICIS news]

BERLIN (ICIS news)--The European October paraxylene (PX) contract has been confirmed at €615/tonne ($891/tonne), down €145/tonne from the previous month, market sources said on Monday.

Given the volatility of crude values over the past two weeks and the continued slump seen in the Asian PX sector, many players had been expecting a significant drop for the October settlement.

Speaking from the sidelines of the 43rd European Petrochemical Association (EPCA) conference in Berlin, Germany, one major buyer expressed surprise that the price had come down so much.

“We expected a sizable drop given the state of the market in Asia, but did not expect the European number to come down so much,” said the buyer.

“It is completely confirmed,” said another one of the buyers involved. “€615/tonne makes Europe pretty competitive.”

However, another source said that the €145/tonne drop would not help stimulate buyer interest in Europe.

“It won’t boost demand in the market, especially now that export opportunities for European sellers have disappeared,” the source explained. “However, if the price had failed to come down in line with Asia, it would have effectively killed the little demand there currently is.”

The settlement was agreed on a free on board (FOB) northwest Europe (NWE) basis.

($1 = €0.69)

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By: Truong Mellor
+44 208 652 3214

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