Europe September PX settles up €65/tonne at €810/tonne

14 September 2010 11:07  [Source: ICIS news]

LONDON (ICIS)--The European September paraxylene (PX) contract has been fully settled at €810/tonne ($1,038/tonne), an increase of €65/tonne from August, producers and consumers confirmed on Tuesday.

Commenting on the September settlement, a major producer said: “[The price of] €810/tonne is the number, it’s all done. Customers were not happy, they wished for €790/tonne.”

The settlement was agreed on a free delivered (FD) northwest Europe (NWE) basis.

The €65/tonne increase in the September European PX contract was largely based on this month’s higher Asian Contract Price (ACP) PX settlement, as well as exchange rate fluctuations and ongoing strong demand from the downstream purified terephthalic acid (PTA) market.

“I followed the €810/tonne. I didn’t have much choice,” said a European buyer.

An initial settlement was reported on 9 September, but at the time major consumers were unwilling to confirm the price.

However, another participant in the PX market said that as far as she was concerned, the September contract price was fully agreed between the major contract settlers on 10 September.

“We heard on [10 September] that four major parties had agreed,” said the buyer.

($1 = €0.78)

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By: Julia Meehan
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