09 December 2010 21:44 [Source: ICIS news]
HOUSTON (ICIS)--Initial US paraxylene (PX) contracts for December settled higher by 2.50 cents/lb ($55/tonne, €41/tonne), a source said on Thursday, keeping the benchmark on par with Asian values.
A US PX producer said it settled with customers at 63 cents/lb DEL (delivered), a 2.50 cent/lb increase from November. However, a US buyer said that the market had not fully agreed on the price.
The margin of increase in the initial US price was nearly identical to the December Asian Contract Price (ACP), which settled at $1,275/tonne, up $55/tonne from the previous month. The ACP increase was driven by strong demand and tight supply.
Meanwhile, the European December PX contract settled at €1,030/tonne FD (free delivered) NWE (northwest Europe), up by $102/tonne based on Thursday’s exchange rate.
PX is mainly used to make polyethylene terephthalate (PET), a feedstock in the production of beverage bottles.
Major US PX producers include BP Chemicals, Chevron Phillips Chemical, Flint Hills Resources and ExxonMobil.
($1 = €0.75)
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