UpdateEurope February OX agreed at €900/tonne, up €25/tonne

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.

“Paraxylene is up, crude is above $100 a barrel and look at the situation in Egypt," said the second buyer.

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)

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

By: Julia Meehan
+44 20 8652 3214

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