22 November 2010 07:08 [Source: ICIS news]
SINGAPORE (ICIS)--Idemitsu Kosan Co has nominated a $130/tonne (€95/tonne) increase for the December paraxylene (PX) Asia Contract Price (ACP), customers of the Japanese aromatics maker said on Monday.
Idemitsu Kosan proposed a December ACP of $1,350/tonne CFR (cost & freight) Asia, which was at parity to an earlier nomination by ExxonMobil and at a $30/tonne premium to JX Nippon Oil and Energy Corp’s proposal of $1,320/tonne CFR Asia.
Company officials were not immediately available to comment, but market players said the hikes were likely to be due to recent jumps in spot PX values.
The PX ACP is negotiated on a monthly basis between three producers – JX Nippon Oil and Energy, Idemitsu Kosan, ExxonMobil – and five buyers – BP, China American Petrochemical Co (CAPCO), Oriental Petrochemical (Taiwan) Corp, Mitsubishi Chemical Co and Mitsui Chemical Co.
It is also widely considered as a benchmark price on which almost all term supply contract formulas are based and is usually settled in the last week of the preceding month.
($1 = €0.73)
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