US PX contracts fall 1.50 cents in March

11 March 2010 21:42  [Source: ICIS news]

HOUSTON (ICIS news)--US market participants said March paraxylene (PX) contracts settled at 50.50 cents/lb ($1,113/tonne, €812/tonne) on Thursday, down 1.50 cents/lb from February.

The lower March settlement followed a 1.75 cent/lb drop in February and was in the middle of the range anticipated by US market participants. A US producer said the traditional method of contract negotiation, which depends heavily on the Asian Contract Price (ACP) for PX, should focus instead on US gasoline demand and pricing.

During periods of long aromatics supply in Asia, the traditional negotiation tactics can leave US producers selling cheap PX into the gasoline pool with little or no profit margin, the seller said.

PX consumers said the lower PX settlement came amid persistent softness in polyester and gasoline demand.

US PX producers include ExxonMobil, BP, Chevron Phillips Chemical and Flint Hills Resources.

($1 = €0.73)

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By: Landon Feller
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