08 March 2011 13:06 [Source: ICIS news]
LONDON (ICIS)--The European March paraxylene (PX) contract price has settled at €1,270/tonne ($1,764/tonne), up €40/tonne from February, based on higher prices in Asia, feedstock costs, rising spot prices, as well as strong demand and tight supply, market sources said on Tuesday.
The settlement was agreed on a free delivered (FD) northwest Europe (NWE) basis.
“The contract was based on supply and demand, the level of spot prices in Europe and the cost pressure of naphtha,” a major producer said.
Referring to the PX contract price in Asia and the new March price in Europe, a second producer said: “Asia is up, so is Europe.”
In Asia, the March contract settled at $1,655/tonne, up by $35/tonne from February.
A buyer said: “Spot prices have been firming in Europe and in Asia, and this has really influenced the price this month.”
Paraxylene spot prices in Europe have soared despite declarations of force majeure (FM) at downstream purified terephthalic acid (PTA) plants.
Lotte Chemical UK lifted its FM last month, while BP's remains in place.
PX spot prices are currently valued at $1,780-1,800/tonne FOB (free on board) Rotterdam, surpassing PX values recorded before the economic crisis.
($1 = €0.72)
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