23 June 2010 06:02 [Source: ICIS news]
SINGAPORE (ICIS news)--Japanese paraxylene (PX) makers - Nippon Oil and Idemitsu Kosan - have proposed a $60-90/tonne (€48.60-72.90/tonne) hike in contract prices for July, market sources said on Wednesday.
“We have proposed a July Asia Contract Price (ACP) of $1,030/tonne CFR Asia,” said a source from Idemitsu Kosan.
“Nippon Oil has nominated a July ACP of $1,000/tonne CFR Asia,” said a source involved in the monthly ACP negotiations.
However, officials from Nippon Oil could not be immediately reached for comments.
The nominations represent a $60-90/tonne hike in price from the fully settled May ACP of $940/tonne CFR Asia.
No nominations were heard from the world’s largest PX maker, ExxonMobil, at the time of writing this report.
The source at Idemitsu Kosan attributed the proposed hike in prices to climbing values of upstream naphtha as well as firming crude futures.
“Our margins are constantly squeezed at current spot prices or even at the May ACP of $940/tonne CFR Asia,” said the source.
Prevailing spot PX prices were heard to be hovering around $920-930/tonne CFR Taiwan and/or China Main Port (CMP) according to ICIS.
The monthly PX ACP is usually settled in the last week of the preceding month. ACP is widely considered as a benchmark price on which almost all term supply contract formulas are based.
($1 = €0.81)
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