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)
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