Europe January PX settles up at €1,120/tonne on Asia prices, demand

14 January 2011 15:06  [Source: ICIS news]

LONDON (ICIS)--The European January paraxylene (PX) contract has settled at €1,120/tonne ($1,493/tonne), up by €90/tonne from December, as a result of rising prices in Asia and tight supply, producers and consumers said on Friday.

The full settlement, made on a free delivered (FD) northwest Europe (NWE) basis, followed the initial agreement that was reached on 11 January, which was also at €1,120/tonne.

One of the producers involved in the initial settlement had previously said that the price was a result of higher prices in Asia, tight supply and strong downstream demand.

Since the initial settlement, other participants in the PX market had followed the €1,120/tonne price, but not all were happy with it.

A major buyer described the price as “sick”.

“I can’t confirm the price because if I do that, it will mean I accept. I see material available and I see the price development not justified. Prices have moved up by 40% in the past 60 days and I am shocked and depressed,” said the major buyer.

The European December PX contract settled at €1,030/tonne, up by €102/tonne from November, also driven by rising prices in Asia, tight supply and strong demand.

The tight supply situation in Europe has continued, according to producers.

“The PX market in Europe is very tight, and there is so much demand that can’t be fulfilled. The situation is simply demand-driven,” the producer said.

Paraxylene spot prices continued to mirror developments in Asia. Spot prices in Europe moved up to $1,440-1,460/tonne FOB (free on board) Rotterdam, a gain of $140/tonne from the previous week’s close.

 ($1 = €0.75)

For more on paraxylene visit ICIS chemical intelligence
Please visit the ICIS plants and projects database
To discuss issues facing the chemical industry go to ICIS connect

By: Julia Meehan
+44 20 8652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly