02 February 2011 11:03 [Source: ICIS news]
LONDON (ICIS)--The European February orthoxylene (OX) contract has settled at €900/tonne ($1,250/tonne), a €25/tonne increase from the January contract price, producers and consumers said on Wednesday.
In relation to the €25/tonne increase, a major buyer said: “We would have liked something lower since the market is balanced, but look at the trend on other aromatics. Producers also want to close the gap between paraxylene.”
A second buyer also compared the cost of paraxylene to OX.
Buyers agreed that while demand for downstream phthalic anhydride (PA) is currently at a seasonal low, demand is expected to pick up.
“Demand for PA is still weak but it’s coming,” said a PA producer and buyer of OX.
A major OX producer said: “The [€25/tonne] increase is based on the general aromatics trend.”
The OX settlement was agreed on a free delivered (FD) northwest Europe (NWE) basis.
($1 = €0.72)
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