02 February 2010 11:10 [Source: ICIS news]
LONDON (ICIS news)--The European February orthoxylene (OX) contract has been confirmed at €720/tonne ($1,000/tonne), up €30/tonne from January, as the initial settlement received further support from players, market sources said on Tuesday.
According to one of the buyers involved, the increase was driven by supply issues due to technical problems at Total’s Gonfreville site.
“The market is tight due to restricted supply,” said the buyer, who added: “It is this tightness that was driving the increase in February, as demand from the phthalic anhydride (PA) sector is still weak.”
Another consumer agreed that the market was tight at present, and added that upward pressure was also coming from the feedstock mixed-xylenes (MX) sector, which was currently firmer than the European paraxylene (PX) market.
European PX values were softening in light of a weaker Asian sector and a lack of direction coming from the region.
The settlement was agreed on a free delivered (FD) northwest Europe (NWE) basis.
($1 = €0.72)
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